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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.

* Premium members only.

S&W Seed Co ROC % Chart

S&W Seed Co Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -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

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

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

* 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.


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

Traded in Other Exchanges
Address
2101 Ken Pratt Boulevard, Suite 201, Longmont, CO, USA, 80501
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.

S&W Seed Co Headlines

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