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Goodfood Market (Goodfood Market) ROC % : 17.45% (As of Feb. 2024)


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What is Goodfood Market ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Goodfood Market's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was 17.45%.

As of today (2024-05-15), Goodfood Market's WACC % is 8.15%. Goodfood Market's ROC % is -0.40% (calculated using TTM income statement data). Goodfood Market earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Goodfood Market ROC % Historical Data

The historical data trend for Goodfood Market's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Goodfood Market ROC % Chart

Goodfood Market Annual Data
Trend Dec15 Dec16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
ROC %
Get a 7-Day Free Trial Premium Member Only -87.71 -6.46 -32.63 -56.92 -15.67

Goodfood Market Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -27.95 4.46 -16.65 -5.92 17.45

Goodfood Market ROC % Calculation

Goodfood Market's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

ROC % (A: Aug. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2022 ) + Invested Capital (A: Aug. 2023 ))/ count )
=-8.402 * ( 1 - 0.37% )/( (80.021 + 26.787)/ 2 )
=-8.3709126/53.404
=-15.67 %

where

Invested Capital(A: Aug. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=100.525 - 20.983 - ( 28.555 - max(0, 40.889 - 40.41+28.555))
=80.021

Invested Capital(A: Aug. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=42.891 - 13.35 - ( 18.493 - max(0, 21.514 - 24.268+18.493))
=26.787

Goodfood Market's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

ROC % (Q: Feb. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2023 ) + Invested Capital (Q: Feb. 2024 ))/ count )
=4.144 * ( 1 - 0% )/( (23.869 + 23.636)/ 2 )
=4.144/23.7525
=17.45 %

where

Invested Capital(Q: Nov. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=41.037 - 14.563 - ( 18.138 - max(0, 21.299 - 23.904+18.138))
=23.869

Invested Capital(Q: Feb. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=40.444 - 12.673 - ( 17.564 - max(0, 19.212 - 23.347+17.564))
=23.636

Note: The Operating Income data used here is four times the quarterly (Feb. 2024) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Goodfood Market  (OTCPK:GDDFF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Goodfood Market's WACC % is 8.15%. Goodfood Market's ROC % is -0.40% (calculated using TTM income statement data). Goodfood Market earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Goodfood Market ROC % Related Terms

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Goodfood Market (Goodfood Market) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Goodfood Market Corp (OTCPK:GDDFF) » Definitions » ROC %
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Traded in Other Exchanges
76O:Germany FOOD:Canada
Address
4600 Hickmore Street, Saint-Laurent, Montreal, QC, CAN, H4T 1K2
Website
https://www.makegoodfood.ca
Goodfood Market Corp is an online grocery company in Canada delivering fresh meal solutions and groceries that make it easy for members to enjoy delicious meals at home every day. The principal business activity is focused on developing and servicing the online meal kit and grocery add-on market. Goodfood members have access to products and exclusive pricing made possible by its direct-to-consumer fulfilment ecosystem that eliminates waste and retail overhead. It has a production facility and administrative offices in Montreal, with five additional facilities located in Quebec, Ontario, Alberta, and British Columbia. The Company is passionate about connecting its partner farms and suppliers to its customers' kitchens while eliminating food waste and costly retail overhead.