Integrated Cannabis Solutions (Integrated Cannabis Solutions) ROC % : -62.65% (As of Sep. 2022)

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What is Integrated Cannabis Solutions 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 %. Integrated Cannabis Solutions's annualized return on capital (ROC %) for the quarter that ended in Sep. 2022 was -62.65%.

As of today (2024-06-09), Integrated Cannabis Solutions's WACC % is 0.00%. Integrated Cannabis Solutions's ROC % is 0.00% (calculated using TTM income statement data). Integrated Cannabis Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Integrated Cannabis Solutions ROC % Historical Data

The historical data trend for Integrated Cannabis Solutions'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.

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Integrated Cannabis Solutions ROC % Chart

Integrated Cannabis Solutions Annual Data

Trend

Dec20

Dec21

ROC %

-93.04

-72.83

Integrated Cannabis Solutions Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROC %	Get a 7-Day Free Trial					-63.41	-50.88	-57.19	-59.19	-62.65

Integrated Cannabis Solutions ROC % Calculation

Integrated Cannabis Solutions'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 )
=	-0.327 * ( 1 - 0% )	/	( (0.345	+	0.553)	/ 2 )
=	-0.327	/	0.449
=	-72.83 %

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	))
=	0.003	-	0.344	-	( 0	-	max(0, 0.689	-	0.003	+	0	))
=	0.345

	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	))
=	0.01	-	0.517	-	( 0	-	max(0, 1.07	-	0.01	+	0	))
=	0.553

Integrated Cannabis Solutions's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-0.4 * ( 1 - 0% )	/	( (0.623	+	0.654)	/ 2 )
=	-0.4	/	0.6385
=	-62.65 %

where

	Invested Capital		(Q: Jun. 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	))
=	0	-	0.635	-	( 0	-	max(0, 1.258	-	0	+	0	))
=	0.623

	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	))
=	0	-	0.72	-	( 0	-	max(0, 1.374	-	0	+	0	))
=	0.654

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

Integrated Cannabis Solutions (OTCPK:IGPK) 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, Integrated Cannabis Solutions's WACC % is 0.00%. Integrated Cannabis Solutions's ROC % is 0.00% (calculated using TTM income statement data). Integrated Cannabis Solutions 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.

Integrated Cannabis Solutions ROC % Related Terms

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Integrated Cannabis Solutions (Integrated Cannabis Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Integrated Cannabis Solutions Inc (OTCPK:IGPK) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1300 N. Florida Mango Road, Site 30, West Palm Beach, FL, USA, 33409

Website

https://www.igpk.org

Integrated Cannabis Solutions Inc is a developmental stage company actively engaged in evaluating investment opportunities for early-stage ventures at the crossroads of the rapidly growing fintech and medical/recreational marijuana industries.

Executives

Eugene Caiazzo

director, officer: CEO, President

1300 N FLORIDA MANGO RD., STE. 30, WEST PALM BEACH FL 33409