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cbdMD (YCBD) ROC % : -5.41% (As of Dec. 2024)


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What is cbdMD 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 %. cbdMD's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -5.41%.

As of today (2025-03-15), cbdMD's WACC % is 8.03%. cbdMD's ROC % is -30.08% (calculated using TTM income statement data). cbdMD earns returns that do not match up to its cost of capital. It will destroy value as it grows.


cbdMD ROC % Historical Data

The historical data trend for cbdMD'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.

cbdMD ROC % Chart

cbdMD Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -22.43 -20.78 -28.68 -46.15 -38.65

cbdMD Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -42.17 -69.44 -17.88 -17.83 -5.41

cbdMD ROC % Calculation

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

ROC % (A: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2023 ) + Invested Capital (A: Sep. 2024 ))/ count )
=-3.315 * ( 1 - 0% )/( (11.191 + 5.965)/ 2 )
=-3.315/8.578
=-38.65 %

where

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

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-0.344 * ( 1 - 0% )/( (5.965 + 6.743)/ 2 )
=-0.344/6.354
=-5.41 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


cbdMD  (AMEX:YCBD) 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, cbdMD's WACC % is 8.03%. cbdMD's ROC % is -30.08% (calculated using TTM income statement data). cbdMD 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.


cbdMD ROC % Related Terms

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cbdMD Business Description

Traded in Other Exchanges
Address
2101 Westinghouse Boulevard, Suite A, Charlotte, NC, USA, 28273
cbdMD Inc is a United States based company. It owns and operates the consumer hemp-based cannabidiol (CBD) brand, cbdMD, Paw CBD as well as ATRx Labs brand of functional mushrooms. The company's product categories include CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD oils, and CBD pet products. The firm distributes its products through an e-commerce website, wholesalers, and a variety of brick-and-mortar retailers.
Executives
Thomas Ronan Kennedy officer: Interim CEO and CFO 8845 RED OAK BLVD, CHARLOTTE NC 28217
Bakari T. Sellers director 4231 VOORHEES ROAD, DENMARK SC 29042
Raines William F Iii director 8314 TOSOMOCK LANE, HUNTERSVILLE NC 28078
Scott G. Stephen director 4249 NORTH WINCHESTER AVE., CHICAGO IL 60613
Sibyl Nichole Swift director 730 HAWTHORNE LANE, APT 441, CHARLOTTE NC 28204
Kevin Macdermott officer: President 9580 CALDWELL RD, MOUNT ULLA NC 28125
Wiesehan John J Iii officer: Chief Revenue Officer 8845 RED OAK BOULEVARD, CHARLOTTE NC 28217
Sim Farar director 8845 RED OAK BOULEVARD, CHARLOTTE NC 28217
Martin A. Sumichrast director, officer: Chairman of the Board and CEO 11125 COLONIAL COUNTRY LANE, CHARLOTTE NC 28277
Raymond Scott Coffman director 230 S. TRYON ST., #1302, CHARLOTTE NC 28202
Peter J. Ghiloni director 115 DEER ESTATES LANE, PONTE VEDRA BEACH FL 32082
Mark S Elliott officer: CFO & COO C/O LEVEL BRANDS, INC., 4521 SHARON ROAD, SUITE 450, CHARLOTTE NC 28211
Gregory C Morris director 421 CRANBORNE CHASE, FORT MILL SC 29708
Caryn Nicole Dunayer officer: President 8476 CATAWBA DOVE DR., BELMONT NC 28012
Erik Sterling 10 percent owner 5505 KALANIANAOLE HWY, HONOLULU HI 96821

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