Digital Commodities Capital (XCNQ:BCBC) ROC % : -146.41% (As of Nov. 2024)

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What is Digital Commodities Capital 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 %. Digital Commodities Capital's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -146.41%.

As of today (2025-03-25), Digital Commodities Capital's WACC % is 16.65%. Digital Commodities Capital's ROC % is -125.70% (calculated using TTM income statement data). Digital Commodities Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Digital Commodities Capital ROC % Historical Data

The historical data trend for Digital Commodities Capital'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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Digital Commodities Capital ROC % Chart

Digital Commodities Capital Annual Data

Trend

Feb22

Feb23

Feb24

ROC %

-178.34

-183.35

-174.67

Digital Commodities Capital Quarterly Data
	Aug20	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROC %	Get a 7-Day Free Trial											-126.77	-117.51	-151.38	-145.95	-146.41

Digital Commodities Capital ROC % Calculation

Digital Commodities Capital's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2024 is calculated as:

	ROC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	-0.869 * ( 1 - 0% )	/	( (0.732	+	0.263)	/ 2 )
=	-0.869	/	0.4975
=	-174.67 %

where

	Invested Capital		(A: Feb. 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	))
=	1.271	-	0.228	-	( 0.311	-	max(0, 0.328	-	1.223	+	0.311	))
=	0.732

	Invested Capital		(A: 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	))
=	0.632	-	0.397	-	( 0.004	-	max(0, 0.626	-	0.598	+	0.004	))
=	0.263

Digital Commodities Capital's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

	ROC % (Q: Nov. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2024 )	+	Invested Capital (Q: Nov. 2024 ))	/ count )
=	-0.5 * ( 1 - 0% )	/	( (0.316	+	0.367)	/ 2 )
=	-0.5	/	0.3415
=	-146.41 %

where

	Invested Capital		(Q: Aug. 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	))
=	0.713	-	0.372	-	( 0.05	-	max(0, 0.661	-	0.686	+	0.05	))
=	0.316

	Invested Capital		(Q: Nov. 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	))
=	0.96	-	0.156	-	( 0.469	-	max(0, 0.499	-	0.936	+	0.469	))
=	0.367

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

Digital Commodities Capital (XCNQ:BCBC) 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, Digital Commodities Capital's WACC % is 16.65%. Digital Commodities Capital's ROC % is -125.70% (calculated using TTM income statement data). Digital Commodities Capital 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.

Digital Commodities Capital ROC % Related Terms

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Digital Commodities Capital Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Digital Commodities Capital Corp (XCNQ:BCBC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

BCBCF:USA W04:Germany

Address

West Broadway, Suite 830-999, Vancouver, BC, CAN, V5Z 1K5

Website

https://www.thebcbc.com

The BC Bud Corp is a house of brands based in British Columbia, Canada selling products in the dried flower, concentrates, vape cartridges, and edibles categories under The BC Bud Co., Solventless Solutions. brands. As a cannabis company, it focuses on creating a brand model rather than investing in redundant and low-margin cultivation facilities. Coming with a vision to embrace a world with fewer distribution borders, prioritizing the brand experience.

Executives

Karim Mohamedani	10% Security Holder
Brayden Robert Sutton	Director
Thomas Taylor	Director

Digital Commodities Capital Headlines

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