Truett-Hurst (Truett-Hurst) ROC % : -54.06% (As of Dec. 2018)

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What is Truett-Hurst 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 %. Truett-Hurst's annualized return on capital (ROC %) for the quarter that ended in Dec. 2018 was -54.06%.

As of today (2024-05-02), Truett-Hurst's WACC % is 0.00%. Truett-Hurst's ROC % is 0.00% (calculated using TTM income statement data). Truett-Hurst earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Truett-Hurst ROC % Historical Data

The historical data trend for Truett-Hurst'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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Truett-Hurst ROC % Chart

Truett-Hurst Annual Data

Trend

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

ROC %

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-4.90

-6.58

-0.22

1.40

0.41

Truett-Hurst Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROC %	Get a 7-Day Free Trial															-2.98	-8.44	20.64	-13.24	-54.06

Truett-Hurst ROC % Calculation

Truett-Hurst's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2018 is calculated as:

	ROC % (A: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2017 )	+	Invested Capital (A: Jun. 2018 ))	/ count )
=	0.122 * ( 1 - 0.1% )	/	( (28.524	+	30.258)	/ 2 )
=	0.121878	/	29.391
=	0.41 %

where

	Invested Capital		(A: Jun. 2017 )
=	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	))
=	30.038	-	0.731	-	( 0.783	-	max(0, 10.827	-	23.829	+	0.783	))
=	28.524

	Invested Capital		(A: Jun. 2018 )
=	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	))
=	31.182	-	0.646	-	( 0.278	-	max(0, 15.69	-	24.751	+	0.278	))
=	30.258

Truett-Hurst's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	-6.608 * ( 1 - 0% )	/	( (12.105	+	12.341)	/ 2 )
=	-6.608	/	12.223
=	-54.06 %

where

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	19.903	-	2.244	-	( 5.554	-	max(0, 2.618	-	13.564	+	5.554	))
=	12.105

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	18.117	-	2.157	-	( 3.619	-	max(0, 2.41	-	11.848	+	3.619	))
=	12.341

Note: The Operating Income data used here is four times the quarterly (Dec. 2018) data.

Truett-Hurst (OTCPK:THST) 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, Truett-Hurst's WACC % is 0.00%. Truett-Hurst's ROC % is 0.00% (calculated using TTM income statement data). Truett-Hurst 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.

Truett-Hurst ROC % Related Terms

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Truett-Hurst (Truett-Hurst) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Truett-Hurst Inc (OTCPK:THST) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

PO Box 1532, Healdsburg, CA, USA, 95448

Website

https://www.truetthurstinc.com

Truett-Hurst Inc operates in the wine industry. It produces and sells wines and other select beverage alcohol products made from wine. It operates two wine-tasting rooms and leases a winery where wine is produced from many varieties of grapes principally grown or purchased in Sonoma County's Dry Creek Valley and Russian River Valley appellations. through its direct-to-consumer division. Direct-to-consumer sales occur through its tasting rooms and wine clubs. The company owns its tasting room and winery in the Dry Creek Valley of Sonoma County, California.

Executives

Karen Weaver	officer: Chief Financial Officer	P.O. BOX 1532, 125 FOSS CREEK CIRCLE, HEALDSBURG CA 95448
Spencer B Grimes	director
John D Fruth	director	475 ECCLES AVE, S SAN FRANCISCO CA 94080
William R Hambrecht	other: See Remarks	C/O ADOBE SUSTEMS INC, 345 PARK AVENUE P O BOX 2704, SAN JOSE CA 95110-2704
Michael R Klein	10 percent owner	2001 K STREET, N.W., SUITE 206, WASHINGTON DC 20006