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BRLS (Borealis Foods) ROIC % : -26.44% (As of Sep. 2024)


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What is Borealis Foods ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Borealis Foods's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -26.44%.

As of today (2024-12-15), Borealis Foods's WACC % is 10.05%. Borealis Foods's ROIC % is -11.20% (calculated using TTM income statement data). Borealis Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Borealis Foods ROIC % Historical Data

The historical data trend for Borealis Foods's ROIC % 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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Borealis Foods ROIC % Chart

Borealis Foods Annual Data
Trend Dec21 Dec22 Dec23
ROIC %
-20.87 -2.99 -4.98

Borealis Foods Quarterly Data
Dec21 Mar22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only - 159.08 -63.53 -35.65 -26.44

Competitive Comparison of Borealis Foods's ROIC %

For the Packaged Foods subindustry, Borealis Foods's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Borealis Foods's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Borealis Foods's ROIC % distribution charts can be found below:

* The bar in red indicates where Borealis Foods's ROIC % falls into.



Borealis Foods ROIC % Calculation

Borealis Foods's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-5.131 * ( 1 - 0% )/( (180.033 + 25.909)/ 2 )
=-5.131/102.971
=-4.98 %

where

Borealis Foods's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-14.484 * ( 1 - -0.02% )/( (54.814 + 54.759)/ 2 )
=-14.4868968/54.7865
=-26.44 %

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.


Borealis Foods  (NAS:BRLS) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Borealis Foods's WACC % is 10.05%. Borealis Foods's ROIC % is -11.20% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Borealis Foods ROIC % Related Terms

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Borealis Foods Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
1540 Cornwall Road, Suite 104, Oakville, ON, CAN, L6J7W5
Borealis Foods Inc is a food technology company that has developed high-quality, affordable, sustainable, and nutritious ready-to-eat meals. It is a mission-driven company committed to utilizing its products to help solve national and global food security and nutrition challenges. Its commitment to nutrition, affordability, and sustainability reflects its goal of positively impacting both human life and the planet. Through the development and launch of its ready-made ramen, featuring 20 grams of complete plant-based protein per serving, Borealis is developing advanced solutions to address global food challenges.

Borealis Foods Headlines

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