Nature's Miracle Holding (Nature's Miracle Holding) ROC % : -43.29% (As of Mar. 2024)

View and export this data going back to 2024. Start your Free Trial

What is Nature's Miracle Holding 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 %. Nature's Miracle Holding's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -43.29%.

As of today (2024-06-05), Nature's Miracle Holding's WACC % is 9.98%. Nature's Miracle Holding's ROC % is -60.44% (calculated using TTM income statement data). Nature's Miracle Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nature's Miracle Holding ROC % Historical Data

The historical data trend for Nature's Miracle Holding'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.

* Premium members only.

Nature's Miracle Holding ROC % Chart

Nature's Miracle Holding Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

50.00

65.42

-25.79

-52.25

Nature's Miracle Holding Quarterly Data
	Dec20	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial							-8.17	-10.02	-11.64	-185.45	-43.29

Nature's Miracle Holding ROC % Calculation

Nature's Miracle Holding'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 )
=	-5.015 * ( 1 - -3.06% )	/	( (10.952	+	8.831)	/ 2 )
=	-5.168459	/	9.8915
=	-52.25 %

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	))
=	20.849	-	13.171	-	( 0.81	-	max(0, 16.722	-	13.448	+	0.81	))
=	10.952

	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	))
=	14.2	-	12.743	-	( 0.222	-	max(0, 14.783	-	7.409	+	0.222	))
=	8.831

Nature's Miracle Holding's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-4.012 * ( 1 - -0.09% )	/	( (8.831	+	9.72)	/ 2 )
=	-4.0156108	/	9.2755
=	-43.29 %

where

	Invested Capital		(Q: 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	))
=	14.2	-	12.743	-	( 0.222	-	max(0, 14.783	-	7.409	+	0.222	))
=	8.831

	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	))
=	12.007	-	13.657	-	( 0.3	-	max(0, 17.595	-	6.225	+	0.3	))
=	9.72

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

Nature's Miracle Holding (NAS:NMHI) 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, Nature's Miracle Holding's WACC % is 9.98%. Nature's Miracle Holding's ROC % is -60.44% (calculated using TTM income statement data). Nature's Miracle Holding 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.

Nature's Miracle Holding ROC % Related Terms

Thank you for viewing the detailed overview of Nature's Miracle Holding's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Nature's Miracle Holding (Nature's Miracle Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Nature's Miracle Holding Inc (NAS:NMHI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

858 North Central Avenue, Upland, Upland, CA, USA, 91786

Website

https://www.nature-miracle.com

Nature's Miracle Holding Inc is a fast-growing agriculture technology company providing services to growers in the Controlled Environment Agriculture ("CEA") industry which also include vertical farming in North America. It offers integrated solutions which include hardware as well as software to design, build and operate various indoor growing settings including greenhouse and indoor-growing spaces.

Nature's Miracle Holding (Nature's Miracle Holding) Headlines

From GuruFocus

NATURE'S MIRACLE HOLDING INC. RECENTLY RANG THE CLOSING BELL AT NASDAQ, TIMES SQUARE NYC

By PRNewswire • 03-19-2024