Body and Mind (XCNQ:BAMM) ROC % : -35.95% (As of Jan. 2024)

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What is Body and Mind 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 %. Body and Mind's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -35.95%.

As of today (2024-06-06), Body and Mind's WACC % is 15.38%. Body and Mind's ROC % is -35.03% (calculated using TTM income statement data). Body and Mind earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Body and Mind ROC % Historical Data

The historical data trend for Body and Mind'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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Body and Mind ROC % Chart

Body and Mind Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROC %

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-13.66

-18.81

-16.58

-16.38

-45.49

Body and Mind Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial															-28.25	-33.86	-44.29	-43.80	-35.95

Body and Mind ROC % Calculation

Body and Mind's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2023 is calculated as:

	ROC % (A: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2022 )	+	Invested Capital (A: Jul. 2023 ))	/ count )
=	-10.133 * ( 1 - -11.94% )	/	( (30.871	+	18.999)	/ 2 )
=	-11.3428802	/	24.935
=	-45.49 %

where

	Invested Capital		(A: Jul. 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	))
=	40.135	-	7.364	-	( 1.9	-	max(0, 9.464	-	16.799	+	1.9	))
=	30.871

	Invested Capital		(A: Jul. 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	))
=	28.021	-	7.026	-	( 1.996	-	max(0, 10.137	-	12.26	+	1.996	))
=	18.999

Body and Mind's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-4.532 * ( 1 - -57.07% )	/	( (18.411	+	21.19)	/ 2 )
=	-7.1184124	/	19.8005
=	-35.95 %

where

	Invested Capital		(Q: Oct. 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	))
=	24.003	-	11.352	-	( 1.222	-	max(0, 13.539	-	7.779	+	1.222	))
=	18.411

	Invested Capital		(Q: Jan. 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	))
=	24.159	-	10.972	-	( 1.953	-	max(0, 15.796	-	7.793	+	1.953	))
=	21.19

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

Body and Mind (XCNQ:BAMM) 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, Body and Mind's WACC % is 15.38%. Body and Mind's ROC % is -35.03% (calculated using TTM income statement data). Body and Mind 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.

Body and Mind ROC % Related Terms

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Body and Mind (XCNQ:BAMM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Body and Mind Inc (XCNQ:BAMM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

BMMJ:USA

Address

750-1095 West Pender Street, Vancouver, BC, CAN, V6E 2M6

Website

https://www.bodyandmind.com

Body and Mind Inc is a multi-state cannabis operator, which has retail, distribution, cultivation, and/or processing operations in Nevada, California, Arkansas, Ohio and Illinois. It has developed the marquis lifestyle Body and Mind brand in Nevada with penetration into dispensaries and has expanded its brand and products to dispensaries in California. The Body and Mind brand appeals to a wide range of cannabis consumers with products including flowers, oils, extracts (wax, live resin, ambrosia), and edibles. The Company Operates in Three segments; Wholesale, Retail, and All others. The Majority of revenue is derived from the Retail segment.

Executives

Darren Tindale

Senior Officer

Body and Mind (XCNQ:BAMM) Headlines

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