S&W Seed Co (STU:2100) ROC % : -18.46% (As of Sep. 2024)

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What is S&W Seed Co 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 %. S&W Seed Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -18.46%.

As of today (2024-12-15), S&W Seed Co's WACC % is 14.84%. S&W Seed Co's ROC % is -14.80% (calculated using TTM income statement data). S&W Seed Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

S&W Seed Co ROC % Historical Data

The historical data trend for S&W Seed Co'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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S&W Seed Co ROC % Chart

S&W Seed Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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-13.02

-16.63

-29.74

-14.78

-12.54

S&W Seed Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-9.82	-13.53	-8.75	-16.78	-18.46

S&W Seed Co ROC % Calculation

S&W Seed Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-13.254 * ( 1 - -1.86% )	/	( (116.736	+	98.667)	/ 2 )
=	-13.5005244	/	107.7015
=	-12.54 %

where

	Invested Capital		(A: Jun. 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	))
=	140.287	-	20.414	-	( 3.137	-	max(0, 65.802	-	77.593	+	3.137	))
=	116.736

	Invested Capital		(A: 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	))
=	112.154	-	18.939	-	( 0.273	-	max(0, 64.326	-	58.874	+	0.273	))
=	98.667

S&W Seed Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-15.216 * ( 1 - -0.02% )	/	( (98.667	+	66.193)	/ 2 )
=	-15.2190432	/	82.43
=	-18.46 %

where

	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	))
=	112.154	-	18.939	-	( 0.273	-	max(0, 64.326	-	58.874	+	0.273	))
=	98.667

	Invested Capital		(Q: Sep. 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	))
=	87.047	-	28.314	-	( 0.432	-	max(0, 49.448	-	41.988	+	0.432	))
=	66.193

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

S&W Seed Co (STU:2100) 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, S&W Seed Co's WACC % is 14.84%. S&W Seed Co's ROC % is -14.80% (calculated using TTM income statement data). S&W Seed Co 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.

S&W Seed Co ROC % Related Terms

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S&W Seed Co Business Description

Industry

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SANW:USA

Address

2101 Ken Pratt Boulevard, Suite 201, Longmont, CO, USA, 80501

Website

https://www.swseedco.com

S&W Seed Co is a multi-crop, middle-market agricultural company. It is engaged in the breeding, production, and sale of alfalfa seed and sorghum seed. It also has a growing commercial market presence in sunflower and maintains an active stevia development program. The company's seed platform develops and supplies germplasm designed to produce higher yields for farmers globally. Its geographical segments include the United States, Australia, Saudi Arabia, Mexico, South Africa, and other countries. Maximum of revenue is earned from USA following Australia second and Mexico third.

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