CNNA (Cann American) ROCE %: -43.06% (As of Aug. 2012)


What is Cann American ROCE %?

Cann American CNNA -7.41% ROCE % is -43.06% as of Aug. 2012.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cann American's annualized ROCE % for the quarter that ended in Aug. 2012 was -43.06%.

Cann American  (OTCPK:CNNA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cann American ROCE % Related Terms

Cann American ROCE % Historical Data

* Premium members only.

The historical data trend for Cann American's ROCE % 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.

Cann American ROCE % Chart

Cann American Annual Data
Trend Feb08 Feb09 Feb10 Feb11 Feb12
ROCE %
0.00 0.00 0.00 -48.91 -163.36

Cann American Quarterly Data
Nov07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12
ROCE % 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 -71.33 -311.73 -239.01 -88.51 -43.06

Cann American ROCE % Calculation

Cann American's annualized ROCE % for the fiscal year that ended in Feb. 2012 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Feb. 2012 )  (A: Feb. 2011 )(A: Feb. 2012 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Feb. 2012 )  (A: Feb. 2011 )(A: Feb. 2012 )
=-1.645/( ( (1.201 - 0.091) + (1.191 - 0.287) )/ 2 )
=-1.645/( (1.11+0.904)/ 2 )
=-1.645/1.007
=-163.36 %

Cann American's ROCE % of for the quarter that ended in Aug. 2012 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Aug. 2012 )  (Q: May. 2012 )(Q: Aug. 2012 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Aug. 2012 )  (Q: May. 2012 )(Q: Aug. 2012 )
=-0.352/( ( (1.209 - 0.215) + (0.922 - 0.281) )/ 2 )
=-0.352/( ( 0.994 + 0.641 )/ 2 )
=-0.352/0.8175
=-43.06 %

(1) Note: The EBIT data used here is four times the quarterly (Aug. 2012) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -43.06% mean?
Cann American (CNNA) has a ROCE % of -43.06% as of Aug. 2012.
Is Cann American's ROCE % too high?
Cann American's current ROCE % is -43.06%.
How does Cann American's ROCE % compare to GLUC and HISP?
Cann American's ROCE % of -43.06% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.03. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.03, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cann American's current ROCE % is -43.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cann American stock overvalued right now?
Cann American (CNNA) has a current ROCE % of -43.06%. The current ROCE % is -43.06%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Cann American (CNNA), the current ROCE % is -43.06% as of Aug. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Cann American Business Description

Address 320 Santana Drive, Suite C, Cloverdale, CA, USA, 95425
Cann American Corp is engaged in developing assets in legal cannabis and hemp industries. It is focused on consulting, infrastructure developming assets, product marketing and strategic acquisitions within the legal cannabis and hemp industries.