Affinor Growers (XCNQ:AFI) ROC % : -49.18% (As of Feb. 2024)

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What is Affinor Growers 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 %. Affinor Growers's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was -49.18%.

As of today (2024-06-08), Affinor Growers's WACC % is 9.57%. Affinor Growers's ROC % is -41.23% (calculated using TTM income statement data). Affinor Growers earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Affinor Growers ROC % Historical Data

The historical data trend for Affinor Growers'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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Affinor Growers ROC % Chart

Affinor Growers Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

ROC %

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-49.82

-45.97

-70.37

-70.69

-27.77

Affinor Growers Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial															-32.85	-37.28	-27.99	-48.18	-49.18

Affinor Growers ROC % Calculation

Affinor Growers's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2023 is calculated as:

	ROC % (A: May. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2022 )	+	Invested Capital (A: May. 2023 ))	/ count )
=	-0.671 * ( 1 - 0% )	/	( (2.553	+	2.279)	/ 2 )
=	-0.671	/	2.416
=	-27.77 %

where

	Invested Capital		(A: May. 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	))
=	2.439	-	1.038	-	( 0.002	-	max(0, 1.268	-	0.116	+	0.002	))
=	2.553

	Invested Capital		(A: May. 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	))
=	2.111	-	1.084	-	( 0.002	-	max(0, 1.269	-	0.017	+	0.002	))
=	2.279

Affinor Growers's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-1.068 * ( 1 - 0% )	/	( (2.368	+	1.975)	/ 2 )
=	-1.068	/	2.1715
=	-49.18 %

where

	Invested Capital		(Q: Nov. 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	))
=	2.007	-	1.239	-	( 0	-	max(0, 1.624	-	0.024	+	0	))
=	2.368

	Invested Capital		(Q: Feb. 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	))
=	2.004	-	1.096	-	( 0.014	-	max(0, 1.143	-	0.076	+	0.014	))
=	1.975

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

Affinor Growers (XCNQ:AFI) 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, Affinor Growers's WACC % is 9.57%. Affinor Growers's ROC % is -41.23% (calculated using TTM income statement data). Affinor Growers 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.

Affinor Growers ROC % Related Terms

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Affinor Growers (XCNQ:AFI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Affinor Growers Inc (XCNQ:AFI) » Definitions » ROC %

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RSSFF:USA 1AF0:Germany

Address

250-750 West Pender Street, Vancouver, BC, CAN, V6C 2T7

Website

https://www.affinorgrowers.com

Affinor Growers Inc is a farming technology company engaged in acquiring, patenting, and commercializing various agriculture technologies and vertical farming technology for the indoor controlled environment and outdoor greenhouse agriculture industry in North America. It produces strawberries and other crops, such as romaine lettuce and herbs using vertical farming technology. The company principally operates in North America. The Company's revenue model includes entering into licensing agreements that provide licensing revenue as well as earnings on sales of its equipment and sale of produce from its production facilities.

Executives

Karim Mohamedani

10% Security Holder

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