Modern Plant Based Foods (XCNQ:MEAT) ROC % : -49.78% (As of Feb. 2024)

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What is Modern Plant Based Foods 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 %. Modern Plant Based Foods's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was -49.78%.

As of today (2024-05-20), Modern Plant Based Foods's WACC % is 44.96%. Modern Plant Based Foods's ROC % is -84.64% (calculated using TTM income statement data). Modern Plant Based Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Modern Plant Based Foods ROC % Historical Data

The historical data trend for Modern Plant Based Foods'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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Modern Plant Based Foods ROC % Chart

Modern Plant Based Foods Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Aug20

Aug21

Aug22

Aug23

ROC %

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-136.84

-556.13

-351.08

-359.83

-182.16

Modern Plant Based Foods Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial															-243.50	-86.65	-128.02	-62.61	-49.78

Modern Plant Based Foods ROC % Calculation

Modern Plant Based Foods's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

	ROC % (A: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2022 )	+	Invested Capital (A: Aug. 2023 ))	/ count )
=	-1.522 * ( 1 - 0.3% )	/	( (0.68	+	0.986)	/ 2 )
=	-1.517434	/	0.833
=	-182.16 %

where

	Invested Capital		(A: Aug. 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	))
=	1.236	-	0.929	-	( 0.217	-	max(0, 1.048	-	0.675	+	0.217	))
=	0.68

	Invested Capital		(A: Aug. 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	))
=	0.703	-	0.99	-	( 0.058	-	max(0, 1.65	-	0.377	+	0.058	))
=	0.986

Modern Plant Based Foods'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 )
=	-0.456 * ( 1 - 0% )	/	( (1.135	+	0.697)	/ 2 )
=	-0.456	/	0.916
=	-49.78 %

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	))
=	0.765	-	1.02	-	( 0.08	-	max(0, 1.854	-	0.464	+	0.08	))
=	1.135

	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	))
=	0.813	-	1.043	-	( 0.174	-	max(0, 1.463	-	0.536	+	0.174	))
=	0.697

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

Modern Plant Based Foods (XCNQ:MEAT) 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, Modern Plant Based Foods's WACC % is 44.96%. Modern Plant Based Foods's ROC % is -84.64% (calculated using TTM income statement data). Modern Plant Based Foods 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.

Modern Plant Based Foods ROC % Related Terms

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Modern Plant Based Foods (XCNQ:MEAT) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Modern Plant Based Foods Inc (XCNQ:MEAT) » Definitions » ROC %

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MDRNF:USA L3OP:Germany

Address

700 West Georgia Street, Suite 2500, Vancouver, BC, CAN, V7Y 1B3

Website

https://www.themodernmeat.com

Modern Plant Based Foods Inc is a Canadian food company based in Vancouver, British Columbia that offers a portfolio of plant-based products including meat alternatives, dairy-free cheeses, homemade style soups and vegan snacks. The company understands the importance of providing nutritious and sustainable alternatives without sacrificing taste. All products are made free of soy, gluten, nuts and GMOs. Modern Plant-Based Foods' objective is to change the way food is produced and consumed for the benefit of people, animals and the environment by using natural plant-based ingredients. The products are available for purchase at various retail locations and on e-commerce platforms.

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