CBDL (CBD Life Sciences) ROIC %: -15.52% (As of Sep. 2015)


What is CBD Life Sciences ROIC %?

CBD Life Sciences CBDL ROIC % is -15.52% as of Sep. 2015.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CBD Life Sciences's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2015 was -15.52%.

As of today (2026-06-26), CBD Life Sciences's WACC % is 0.00%. CBD Life Sciences's ROIC % is 0.00% (calculated using TTM income statement data). CBD Life Sciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CBD Life Sciences  (OTCPK:CBDL) 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, CBD Life Sciences's WACC % is 0.00%. CBD Life Sciences's ROIC % is 0.00% (calculated using TTM income statement data). CBD Life Sciences 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 %, 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.

CBD Life Sciences ROIC % Related Terms

CBD Life Sciences ROIC % Historical Data

* Premium members only.

The historical data trend for CBD Life Sciences'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.

CBD Life Sciences ROIC % Chart

CBD Life Sciences Annual Data
Trend Dec11 Dec12 Dec13 Dec14
ROIC %
-11.16 -34.51 -70.21 -137.24

CBD Life Sciences Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
ROIC % 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 -323.56 -18.68 -14.01 -20.69 -15.52

CBDL vs QPAG, ADGO, MCCX: ROIC % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, CBD Life Sciences'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.

CBD Life Sciences ROIC % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, CBD Life Sciences's ROIC % distribution charts can be found below:

* The bar in red indicates where CBD Life Sciences's ROIC % falls into.


CBD Life Sciences ROIC % Calculation

CBD Life Sciences's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2014 is calculated as:

ROIC % (A: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2013 ) + Invested Capital (A: Dec. 2014 ))/ count )
=-0.761 * ( 1 - 0% )/( (0.548 + 0.561)/ 2 )
=-0.761/0.5545
=-137.24 %

where

Invested Capital(A: Dec. 2013 )
=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))
=0.663 - 0.115 - ( 0 - max(0, 0.115 - 0.354+0))
=0.548

Invested Capital(A: Dec. 2014 )
=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))
=0.632 - 0.071 - ( 0 - max(0, 0.071 - 0.346+0))
=0.561

CBD Life Sciences's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2015 is calculated as:

ROIC % (Q: Sep. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2015 ) + Invested Capital (Q: Sep. 2015 ))/ count )
=-0.088 * ( 1 - 0% )/( (0.579 + 0.555)/ 2 )
=-0.088/0.567
=-15.52 %

where

Invested Capital(Q: Jun. 2015 )
=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))
=0.624 - 0.045 - ( 0 - max(0, 0.045 - 0.346+0))
=0.579

Invested Capital(Q: Sep. 2015 )
=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))
=0.621 - 0.066 - ( 0 - max(0, 0.066 - 0.346+0))
=0.555

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data. The tax rate is limited to between 0% and 100%.

* 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 ROIC % →
What does a ROIC % of -15.52% mean?
CBD Life Sciences (CBDL) has a ROIC % of -15.52% as of Sep. 2015. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on CBD Life Sciences and its competitors.
Is CBD Life Sciences' ROIC % too high?
CBD Life Sciences' current ROIC % is -15.52%.
How does CBD Life Sciences' ROIC % compare to QPAG and ADGO?
CBD Life Sciences' ROIC % of -15.52% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.44. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.44, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on CBD Life Sciences and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CBD Life Sciences's current ROIC % is -15.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CBD Life Sciences stock overvalued right now?
CBD Life Sciences (CBDL) has a current ROIC % of -15.52%. The current ROIC % is -15.52%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For CBD Life Sciences (CBDL), the current ROIC % is -15.52% as of Sep. 2015. 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.

CBD Life Sciences Business Description

Address 10953 N. Frank Llyod Wright Boulevard, Unit 108, Scottsdale, AZ, USA, 85259
CBD Life Sciences Inc is developing and marketing a line of cannabidiol-based organic products such as hemp drops, massage oils, recovery pain relief creams, anxiety and sleep solutions supplements, edibles, and a full line of pet products.