LFSWF (Lifeist Wellness) ROC % : -157.57% (As of Aug. 2024)

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What is Lifeist Wellness 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 %. Lifeist Wellness's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was -157.57%.

As of today (2024-12-13), Lifeist Wellness's WACC % is 9.48%. Lifeist Wellness's ROC % is -294.87% (calculated using TTM income statement data). Lifeist Wellness earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Lifeist Wellness ROC % Historical Data

The historical data trend for Lifeist Wellness'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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Lifeist Wellness ROC % Chart

Lifeist Wellness Annual Data

Trend

Mar14

Mar15

Aug16

Aug17

Aug18

Nov19

Nov20

Nov21

Nov22

Nov23

ROC %

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-94.01

-122.04

-130.18

-102.33

-155.94

Lifeist Wellness Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROC %	Get a 7-Day Free Trial															-24.96	-559.35	-200.12	-98.98	-157.57

Lifeist Wellness ROC % Calculation

Lifeist Wellness's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2023 is calculated as:

	ROC % (A: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2022 )	+	Invested Capital (A: Nov. 2023 ))	/ count )
=	-9.161 * ( 1 - -0.02% )	/	( (7.931	+	3.821)	/ 2 )
=	-9.1628322	/	5.876
=	-155.94 %

where

	Invested Capital		(A: Nov. 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	))
=	15.359	-	4.603	-	( 2.825	-	max(0, 5.292	-	11.19	+	2.825	))
=	7.931

	Invested Capital		(A: 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	))
=	9.775	-	6.167	-	( 1.061	-	max(0, 6.619	-	6.406	+	1.061	))
=	3.821

Lifeist Wellness's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2024 is calculated as:

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	-3.48 * ( 1 - 0% )	/	( (2.511	+	1.906)	/ 2 )
=	-3.48	/	2.2085
=	-157.57 %

where

	Invested Capital		(Q: May. 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	))
=	7.045	-	6.435	-	( 1.51	-	max(0, 6.748	-	4.847	+	1.51	))
=	2.511

	Invested Capital		(Q: Aug. 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	))
=	4.447	-	1.793	-	( 0.748	-	max(0, 1.879	-	2.707	+	0.748	))
=	1.906

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

Lifeist Wellness (OTCPK:LFSWF) 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, Lifeist Wellness's WACC % is 9.48%. Lifeist Wellness's ROC % is -294.87% (calculated using TTM income statement data). Lifeist Wellness 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.

Lifeist Wellness ROC % Related Terms

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Lifeist Wellness Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Lifeist Wellness Inc (OTCPK:LFSWF) » Definitions » ROC %

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M5B0:Germany LFST:Canada

Address

18 Canso Road, Etobicoke, Toronto, ON, CAN, M9W 4L8

Website

https://www.lifeist.com

Lifeist Wellness Inc is a portfolio wellness company leveraging advancements in science and technology. Its portfolio of brands includes; CannMart Inc, a distributor of licensed and in-house branded adult-use cannabis and cannabis-derived products in Canada; CannMart Marketplace Inc operates CannMart.com, an online marketplace for hemp-derived CBD and accessories in the U.S.; CannMart Labs Inc, licensed facility for BHO (butane hash oil) extraction within Canada; Zest Brand, liquid Diamond vape formulations; Australian Vapes online supplier of hardware, including vaporizers, and related accessories and Mikra, a biosciences and consumer wellness company. The firm generates a majority of its revenue from the operations of CannMart.