GPFT (Grapefruit USA) ROC %: -9.04% (As of Sep. 2023)

What is Grapefruit USA ROC %?

Grapefruit USA GPFT -10.71% ROC % is -9.04% as of Sep. 2023.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Grapefruit USA's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -9.04%.

As of today (2026-06-26), Grapefruit USA's WACC % is 0.00%. Grapefruit USA's ROC % is 0.00% (calculated using TTM income statement data). Grapefruit USA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Grapefruit USA (OTCPK:GPFT) 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, Grapefruit USA's WACC % is 0.00%. Grapefruit USA's ROC % is 0.00% (calculated using TTM income statement data). Grapefruit USA 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.

Grapefruit USA ROC % Related Terms

Grapefruit USA ROC % Historical Data

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The historical data trend for Grapefruit USA'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.

Grapefruit USA ROC % Chart

Grapefruit USA Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

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-40.20

-275.47

-48.13

-26.58

-39.96

Grapefruit USA Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Sep23
ROC %	Get a 7-Day Free Trial															-40.39	-15.32	-47.71	-22.78	-9.04

Grapefruit USA ROC % Calculation

Grapefruit USA's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-2.317 * ( 1 - 0% )	/	( (4.123	+	7.475)	/ 2 )
=	-2.317	/	5.799
=	-39.96 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	3.049	-	2.357	-	( 0.3	-	max(0, 4.38	-	0.949	+	0.3	))
=	4.123

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	2.816	-	2.331	-	( 0.009	-	max(0, 7.704	-	0.714	+	0.009	))
=	7.475

Grapefruit USA's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-0.652 * ( 1 - 0% )	/	( (7.346	+	7.072)	/ 2 )
=	-0.652	/	7.209
=	-9.04 %

where

	Invested Capital		(Q: Sep. 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	))
=	2.715	-	2.638	-	( 0.024	-	max(0, 7.913	-	0.644	+	0.024	))
=	7.346

	Invested Capital		(Q: Sep. 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	))
=	1.552	-	2.925	-	( 0.012	-	max(0, 8.484	-	0.039	+	0.012	))
=	7.072

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -9.04% mean?

Grapefruit USA (GPFT) has a ROC % of -9.04% as of Sep. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Grapefruit USA and its competitors.

Is Grapefruit USA's ROC % too high?

Grapefruit USA's current ROC % is -9.04%.

How does Grapefruit USA's ROC % compare to KAYS and KOAN?

Grapefruit USA's ROC % of -9.04% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for a Drug Manufacturers company?

The median ROC % among Drug Manufacturers companies is 4.44, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Grapefruit USA and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grapefruit USA's current ROC % is -9.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Grapefruit USA stock overvalued right now?

Grapefruit USA (GPFT) has a current ROC % of -9.04%. The current ROC % is -9.04%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For Grapefruit USA (GPFT), the current ROC % is -9.04% as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Grapefruit USA Business Description

Industry Healthcare Drug Manufacturers

Comparable Companies KAYS KOAN MJNE LRSV CSTF STMH KGKG CBDY CANB GCAN ZTS XTER:MRK TSE:4502 LSE:HLN NSE:SUNPHARMA TSE:4523 TSE:4507 XSWX:SDZ VTRS NBIX

Address 10850 Wilshire Boulevard, Suite 710, Los Angeles, CA, USA, 90024

Website https://www.grapefruitblvd.com

Grapefruit USA Inc currently has no operations. It is actively seeking a strategic merger partner with the goal of completing a business combination.