Global Food and Ingredients (TSXV:PEAS.H) ROC % : -0.52% (As of Dec. 2023)

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What is Global Food and Ingredients 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 %. Global Food and Ingredients's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -0.52%.

As of today (2024-06-02), Global Food and Ingredients's WACC % is 7.84%. Global Food and Ingredients's ROC % is -7.90% (calculated using TTM income statement data). Global Food and Ingredients earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Global Food and Ingredients ROC % Historical Data

The historical data trend for Global Food and Ingredients'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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Global Food and Ingredients ROC % Chart

Global Food and Ingredients Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

ROC %

-0.27

-3.06

-5.83

-7.45

Global Food and Ingredients Quarterly Data
	Mar20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial									0.20	-10.79	-13.59	-11.54	-0.52

Global Food and Ingredients ROC % Calculation

Global Food and Ingredients's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-5.391 * ( 1 - 17.77% )	/	( (68.364	+	50.568)	/ 2 )
=	-4.4330193	/	59.466
=	-7.45 %

where

	Invested Capital		(A: Mar. 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	))
=	69.679	-	9.991	-	( 1.793	-	max(0, 44.46	-	35.784	+	1.793	))
=	68.364

	Invested Capital		(A: Mar. 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	))
=	59.512	-	9.926	-	( 0.483	-	max(0, 28.53	-	27.548	+	0.483	))
=	50.568

Global Food and Ingredients's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2.464 * ( 1 - 111.65% )	/	( (54.861	+	55.259)	/ 2 )
=	-0.287056	/	55.06
=	-0.52 %

where

	Invested Capital		(Q: Sep. 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	))
=	55.225	-	9.59	-	( 0.299	-	max(0, 30.732	-	21.506	+	0.299	))
=	54.861

	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	))
=	60.953	-	14.818	-	( 0.353	-	max(0, 36.755	-	27.631	+	0.353	))
=	55.259

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Global Food and Ingredients (TSXV:PEAS.H) 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, Global Food and Ingredients's WACC % is 7.84%. Global Food and Ingredients's ROC % is -7.90% (calculated using TTM income statement data). Global Food and Ingredients 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.

Global Food and Ingredients ROC % Related Terms

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Global Food and Ingredients (TSXV:PEAS.H) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Global Food and Ingredients Inc (TSXV:PEAS.H) » Definitions » ROC %

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Traded in Other Exchanges

PEASF:USA

Address

43 Colborne Street, Suite 400, Toronto, ON, CAN, M5E 1E3

Website

https://www.gfiglobalfood.com

Global Food and Ingredients Inc is a plant-based food and ingredients company, focused on pulses and specialty crops chain for peas, beans, lentils, chickpeas and other high protein specialty crops. The Company supplies premium plant-based high protein ingredients to customers around the world and distributes truckload and less-than truckload of bagged product directly to food processing companies, foodservice companies and institutional buyers (educational institutions, healthcare facilities, correctional facilities, etc.) in North America.

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