HPMM (Hemp Naturals) ROC %: -37.40% (As of Nov. 2018)


What is Hemp Naturals ROC %?

Hemp Naturals HPMM -95.00% ROC % is -37.40% as of Nov. 2018.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Hemp Naturals's annualized return on capital (ROC %) for the quarter that ended in Nov. 2018 was -37.40%.

As of today (2026-07-01), Hemp Naturals's WACC % is 0.00%. Hemp Naturals's ROC % is 0.00% (calculated using TTM income statement data). Hemp Naturals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hemp Naturals  (OTCPK:HPMM) 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, Hemp Naturals's WACC % is 0.00%. Hemp Naturals's ROC % is 0.00% (calculated using TTM income statement data). Hemp Naturals 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.

Hemp Naturals ROC % Related Terms

Hemp Naturals ROC % Historical Data

* Premium members only.

The historical data trend for Hemp Naturals'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.

Hemp Naturals ROC % Chart

Hemp Naturals Annual Data
Trend Nov15 Nov16 Nov17 Nov18
ROC %
0.00 0.00 -107.03 -105.28

Hemp Naturals Quarterly Data
Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -833.61 -51.84 -57.65 -65.03 -37.40

Hemp Naturals ROC % Calculation

Hemp Naturals's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2018 is calculated as:

ROC % (A: Nov. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Nov. 2017 ) + Invested Capital (A: Nov. 2018 ))/ count )
=-5.755 * ( 1 - 0% )/( (3.712 + 7.221)/ 2 )
=-5.755/5.4665
=-105.28 %

where

Invested Capital(A: Nov. 2017 )
=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))
=3.721 - 0.009 - ( 0 - max(0, 0.009 - 3.721+0))
=3.712

Invested Capital(A: Nov. 2018 )
=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))
=7.345 - 0.026 - ( 0.098 - max(0, 1.015 - 7.345+0.098))
=7.221

Hemp Naturals's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2018 is calculated as:

ROC % (Q: Nov. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2018 ) + Invested Capital (Q: Nov. 2018 ))/ count )
=-3.316 * ( 1 - 0% )/( (10.511 + 7.221)/ 2 )
=-3.316/8.866
=-37.40 %

where

Invested Capital(Q: Aug. 2018 )
=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))
=10.53 - 0.011 - ( 0.008 - max(0, 0.182 - 10.53+0.008))
=10.511

Invested Capital(Q: Nov. 2018 )
=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))
=7.345 - 0.026 - ( 0.098 - max(0, 1.015 - 7.345+0.098))
=7.221

Note: The Operating Income data used here is four times the quarterly (Nov. 2018) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -37.40% mean?
Hemp Naturals (HPMM) has a ROC % of -37.40% as of Nov. 2018. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Hemp Naturals and its competitors.
Is Hemp Naturals' ROC % too high?
Hemp Naturals' current ROC % is -37.40%.
How does Hemp Naturals' ROC % compare to RDGL and NBGV?
Hemp Naturals' ROC % of -37.40% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.51. 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 4.51, based on 983 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 Hemp Naturals and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hemp Naturals's current ROC % is -37.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hemp Naturals stock overvalued right now?
Hemp Naturals (HPMM) has a current ROC % of -37.40%. The current ROC % is -37.40%. 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 Hemp Naturals (HPMM), the current ROC % is -37.40% as of Nov. 2018. 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.

Hemp Naturals Business Description

Address 7441 Route 9, Plattsburgh, NY, USA, 12901
Hemp Naturals Inc is a developmental stage company that plans to research, develop, acquire, and sell products made of industrial hemp. Its product offerings include a wide range of nutritional hemp health supplements, hemp drinks and foods, and beauty supply products.