Beyond Meat (LTS:0A20) ROC % : -27.51% (As of Jun. 2024)

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What is Beyond Meat 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 %. Beyond Meat's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -27.51%.

As of today (2024-10-31), Beyond Meat's WACC % is 5.74%. Beyond Meat's ROC % is -55.74% (calculated using TTM income statement data). Beyond Meat earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Beyond Meat ROC % Historical Data

The historical data trend for Beyond Meat'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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Beyond Meat ROC % Chart

Beyond Meat Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.37

-21.21

-40.46

-54.17

-56.23

Beyond Meat Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial															-31.16	-41.83	-110.16	-41.96	-27.51

Beyond Meat ROC % Calculation

Beyond Meat's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-314.099 * ( 1 - -0% )	/	( (642.178	+	475.06)	/ 2 )
=	-314.099	/	558.619
=	-56.23 %

where

	Invested Capital		(A: Dec. 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	))
=	1002.739	-	67.995	-	( 292.566	-	max(0, 71.594	-	572.497	+	292.566	))
=	642.178

	Invested Capital		(A: Dec. 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	))
=	710.171	-	60.418	-	( 174.693	-	max(0, 68.183	-	341.898	+	174.693	))
=	475.06

Beyond Meat's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-126.088 * ( 1 - 0.1% )	/	( (462.863	+	452.758)	/ 2 )
=	-125.961912	/	457.8105
=	-27.51 %

where

	Invested Capital		(Q: Mar. 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	))
=	676.224	-	68.081	-	( 145.28	-	max(0, 72.495	-	309.583	+	145.28	))
=	462.863

	Invested Capital		(Q: Jun. 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	))
=	660.736	-	73.391	-	( 134.587	-	max(0, 77.588	-	294.739	+	134.587	))
=	452.758

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

Beyond Meat (LTS:0A20) 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, Beyond Meat's WACC % is 5.74%. Beyond Meat's ROC % is -55.74% (calculated using TTM income statement data). Beyond Meat 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.

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Beyond Meat Business Description

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Address

119 Standard Street, El Segundo, CA, USA, 90245

Website

https://www.beyondmeat.com

Beyond Meat Inc is a provider of plant-based meat company offering a portfolio of revolutionary plant-based meats. It builds meat directly from plants, an innovation that enables consumers to experience the taste, texture and other sensory attributes of popular animal-based meat products while enjoying the nutritional and environmental benefits of eating plant-based meat product It has products such as burgers, sausage, ground beef, jerky, meatballs and chicken. The company generates revenue from sales of its products to the customers across mainstream grocery, mass merchandiser, club store, convenience store and natural retailer channels, and various food-away-from-home channels, including restaurants, foodservice outlets and schools, mainly in the United States.

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