GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Leef Brands Inc (XCNQ:LEEF) » Definitions » ROC %

Leef Brands (XCNQ:LEEF) ROC % : -29.29% (As of Sep. 2024)


View and export this data going back to 2013. Start your Free Trial

What is Leef Brands 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 %. Leef Brands's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -29.29%.

As of today (2025-03-03), Leef Brands's WACC % is 10.40%. Leef Brands's ROC % is -14.44% (calculated using TTM income statement data). Leef Brands earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Leef Brands ROC % Historical Data

The historical data trend for Leef Brands'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.

* Premium members only.

Leef Brands ROC % Chart

Leef Brands Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul19 Jul20 Jul21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.67 -13.59 -7.93 -41.73 -12.61

Leef Brands Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -18.08 -22.78 22.47 -22.63 -29.29

Leef Brands ROC % Calculation

Leef Brands'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 )
=-8.873 * ( 1 - 12.66% )/( (69.104 + 53.797)/ 2 )
=-7.7496782/61.4505
=-12.61 %

where

Leef Brands'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 )
=-12.932 * ( 1 - -16.11% )/( (51.111 + 51.426)/ 2 )
=-15.0153452/51.2685
=-29.29 %

where

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

* 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.


Leef Brands  (XCNQ:LEEF) 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, Leef Brands's WACC % is 10.40%. Leef Brands's ROC % is -14.44% (calculated using TTM income statement data). Leef Brands 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.


Leef Brands ROC % Related Terms

Thank you for viewing the detailed overview of Leef Brands's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Leef Brands Business Description

Traded in Other Exchanges
Address
1055 West Georgia Street, Suite 1500, Vancouver, BC, CAN, V6E 4N7
Leef Brands Inc is a manufacturer of cannabis-branded products manufacturer based in California. It offers products under brand names like Real Deal Resin, Ganja Gold, Heady, and Leef. Geographically, it derives a majority of its revenue from the United States. It has one operation of the Company located in Canada and the United States. The Company has one reportable business segment in the cannabis sector. It generates the majority of its revenue from the USA.
Executives
Kevin John Wilson Senior Officer
Micah Anderson 10% Security Holder, Director, Director or Senior Officer of 10% Security Holder, Issuer, Senior Officer

Leef Brands Headlines

No Headlines