ERBB (American Green) ROIC %: -1.47% (As of Jun. 2023)


What is American Green ROIC %?

American Green ERBB ROIC % is -1.47% as of Jun. 2023.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. American Green's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -1.47%.

As of today (2026-07-01), American Green's WACC % is 0.00%. American Green's ROIC % is 0.00% (calculated using TTM income statement data). American Green earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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

American Green ROIC % Related Terms

American Green ROIC % Historical Data

* Premium members only.

The historical data trend for American Green'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.

American Green ROIC % Chart

American Green Annual Data
Trend Jun22 Jun23
ROIC %
0.00 -1.47

American Green Semi-Annual Data
Jun22 Jun23
ROIC % 0.00 -1.47

ERBB vs UPC, MJNA, KAYS: ROIC % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, American Green'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.

American Green ROIC % vs Drug Manufacturers Industry

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

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


American Green ROIC % Calculation

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

ROIC % (A: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2022 ) + Invested Capital (A: Jun. 2023 ))/ count )
=-0.471 * ( 1 - 0% )/( (0 + 32.123)/ 1 )
=-0.471/32.123
=-1.47 %

where

Invested Capital(A: Jun. 2022 )
=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 - 0 - ( 0 - max(0, 0 - 0+0))
=0

Invested Capital(A: Jun. 2023 )
=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))
=9.731 - 1.042 - ( 0.014 - max(0, 23.854 - 0.42+0.014))
=32.123

American Green's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

ROIC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2022 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=-0.471 * ( 1 - 0% )/( (0 + 32.123)/ 1 )
=-0.471/32.123
=-1.47 %

where

Invested Capital(Q: Jun. 2022 )
=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 - 0 - ( 0 - max(0, 0 - 0+0))
=0

Invested Capital(Q: Jun. 2023 )
=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))
=9.731 - 1.042 - ( 0.014 - max(0, 23.854 - 0.42+0.014))
=32.123

Note: The Operating Income data used here is one times the annual (Jun. 2023) 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 -1.47% mean?
American Green (ERBB) has a ROIC % of -1.47% as of Jun. 2023. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on American Green and its competitors.
Is American Green's ROIC % too high?
American Green's current ROIC % is -1.47%.
How does American Green's ROIC % compare to UPC and MJNA?
American Green's ROIC % of -1.47% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.51. 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 4.51, based on 983 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 American Green and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Green's current ROIC % is -1.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Green stock overvalued right now?
American Green (ERBB) has a current ROIC % of -1.47%. The current ROIC % is -1.47%. 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 American Green (ERBB), the current ROIC % is -1.47% as of Jun. 2023. 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.

American Green Business Description

Address 30 N Gould Street, Suite R, Sheridan, WY, USA, 82801
American Green Inc is a technology company in the medical cannabis industry. It is involved in the business of developing a cultivation facility in Phoenix Arizona for medical marijuana and also owns proprietary dispensing machines and has online sales operation for CBD products and apparel.