CGAC (Code Green Apparel) ROIC %: -19.78% (As of Sep. 2017)


What is Code Green Apparel ROIC %?

Code Green Apparel CGAC ROIC % is -19.78% as of Sep. 2017.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Code Green Apparel's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2017 was -19.78%.

As of today (2026-07-09), Code Green Apparel's WACC % is 0.00%. Code Green Apparel's ROIC % is 0.00% (calculated using TTM income statement data). Code Green Apparel earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Code Green Apparel  (OTCPK:CGAC) 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, Code Green Apparel's WACC % is 0.00%. Code Green Apparel's ROIC % is 0.00% (calculated using TTM income statement data). Code Green Apparel 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.

Code Green Apparel ROIC % Related Terms

Code Green Apparel ROIC % Historical Data

* Premium members only.

The historical data trend for Code Green Apparel'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.

Code Green Apparel ROIC % Chart

Code Green Apparel Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec15 Dec16
ROIC %
Get a 7-Day Free Trial 0.00 0.00 -1,098.04 -169.15 -94.83

Code Green Apparel Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only -17.16 -180.92 -15.72 -75.62 -19.78

Code Green Apparel ROIC % Competitor Comparison

For the Capital Markets subindustry, Code Green Apparel'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.

Code Green Apparel ROIC % vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Code Green Apparel's ROIC % distribution charts can be found below:

* The bar in red indicates where Code Green Apparel's ROIC % falls into.


Code Green Apparel ROIC % Calculation

Code Green Apparel's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROIC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=-1.632 * ( 1 - 0% )/( (1.265 + 2.177)/ 2 )
=-1.632/1.721
=-94.83 %

where

Invested Capital(A: Dec. 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))
=0.266 - 0.239 - ( 0.032 - max(0, 1.503 - 0.265+0.032))
=1.265

Invested Capital(A: Dec. 2016 )
=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))
=0.044 - 0.462 - ( 0 - max(0, 2.626 - 0.031+0))
=2.177

Code Green Apparel's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2017 is calculated as:

ROIC % (Q: Sep. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2017 ) + Invested Capital (Q: Sep. 2017 ))/ count )
=-0.408 * ( 1 - 0% )/( (1.63 + 2.495)/ 2 )
=-0.408/2.0625
=-19.78 %

where

Invested Capital(Q: Jun. 2017 )
=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))
=0.027 - 0.497 - ( 0 - max(0, 2.116 - 0.016+0))
=1.63

Invested Capital(Q: Sep. 2017 )
=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))
=0.01 - 0.44 - ( 0 - max(0, 2.925 - 0+0))
=2.495

Note: The Operating Income data used here is four times the quarterly (Sep. 2017) 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 -19.78% mean?
Code Green Apparel (CGAC) has a ROIC % of -19.78% as of Sep. 2017. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Code Green Apparel and its competitors.
Is Code Green Apparel's ROIC % too high?
Code Green Apparel's current ROIC % is -19.78%.
How does Code Green Apparel's ROIC % compare to competitors?
Code Green Apparel's ROIC % of -19.78% can be compared against companies in the Capital Markets industry. The industry median ROIC % is 1.34. 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 Capital Markets company?
The median ROIC % among Capital Markets companies is 1.34, based on 694 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 Code Green Apparel and its competitors. For the Capital Markets industry, the median ROIC % is 1.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Code Green Apparel's current ROIC % is -19.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Code Green Apparel stock overvalued right now?
Code Green Apparel (CGAC) has a current ROIC % of -19.78%. The current ROIC % is -19.78%. 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 Code Green Apparel (CGAC), the current ROIC % is -19.78% as of Sep. 2017. 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.

Code Green Apparel Business Description

Address 12600 Hill Country Boulevard, Suite R-275, Bee Cave, TX, USA, 78738
Code Green Apparel Corp is a Digital Energy Company. The company focuses on development of containerized and modular AI infrastructure designed to address the growing energy, cooling, and deployment constraints facing AI data centers, as AI infrastructure faces growing constraints driven by power availability and rising electrical costs.