Happy Belly Food Group (XCNQ:HBFG) ROC % : -45.95% (As of Sep. 2024)

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What is Happy Belly Food Group 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 %. Happy Belly Food Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -45.95%.

As of today (2024-12-11), Happy Belly Food Group's WACC % is 9.70%. Happy Belly Food Group's ROC % is -44.94% (calculated using TTM income statement data). Happy Belly Food Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Happy Belly Food Group ROC % Historical Data

The historical data trend for Happy Belly Food Group'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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Happy Belly Food Group ROC % Chart

Happy Belly Food Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-1,303.75

-573.01

-736.01

-77.23

-41.96

Happy Belly Food Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-25.03	-52.32	-38.59	-40.02	-45.95

Happy Belly Food Group ROC % Calculation

Happy Belly Food Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-1.453 * ( 1 - 0% )	/	( (2.802	+	4.123)	/ 2 )
=	-1.453	/	3.4625
=	-41.96 %

where

	Invested Capital		(A: Dec. 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	))
=	4.283	-	0.587	-	( 1.161	-	max(0, 0.955	-	1.849	+	1.161	))
=	2.802

	Invested Capital		(A: 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	))
=	5.853	-	0.935	-	( 1.578	-	max(0, 1.349	-	2.144	+	1.578	))
=	4.123

Happy Belly Food Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-2.62 * ( 1 - 0% )	/	( (6.707	+	4.697)	/ 2 )
=	-2.62	/	5.702
=	-45.95 %

where

	Invested Capital		(Q: Jun. 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	))
=	9.463	-	0.953	-	( 4.441	-	max(0, 3.517	-	5.32	+	4.441	))
=	6.707

	Invested Capital		(Q: Sep. 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	))
=	9.2	-	0.917	-	( 3.949	-	max(0, 1.416	-	5.002	+	3.949	))
=	4.697

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

Happy Belly Food Group (XCNQ:HBFG) 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, Happy Belly Food Group's WACC % is 9.70%. Happy Belly Food Group's ROC % is -44.94% (calculated using TTM income statement data). Happy Belly Food Group 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.

Happy Belly Food Group ROC % Related Terms

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Happy Belly Food Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Happy Belly Food Group Inc (XCNQ:HBFG) » Definitions » ROC %

Comparable Companies

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HBFGF:USA W3J:Germany

Address

1681 Chestnut Street, Suite 400, Vancouver, BC, CAN, V6J 4M6

Website

https://www.happybellyfg.com

Happy Belly Food Group Inc is a quick-serve restaurant and consumer packaged goods wellness company bringing delicious foods and retail brands to customers. The Company has two operating segments which are Consumer product goods and Quick restaurant services. The consumer product goods currently consist of two brands namely, Holy Crap which produces and sells breakfast cereal and related food products, and Lumber Heads which produces and sells snack foods. The Company operates a number of plant-based restaurants namely Yamchops, Heal Lifestyle, and Lettuce Love.

Executives

Mark Rechichi	Director
Sean Black	Director, Senior Officer
Gary Fung	Senior Officer
Alex Rechichi	Director
Kevin Cole	Director
Shawn Moniz	10% Security Holder, Director, Senior Officer

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