Marrone Bio Innovations (Marrone Bio Innovations) ROIC % : -37.27% (As of Mar. 2022)

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What is Marrone Bio Innovations 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 %. Marrone Bio Innovations's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2022 was -37.27%.

As of today (2024-05-05), Marrone Bio Innovations's WACC % is 5.54%. Marrone Bio Innovations's ROIC % is -28.73% (calculated using TTM income statement data). Marrone Bio Innovations earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Marrone Bio Innovations ROIC % Historical Data

The historical data trend for Marrone Bio Innovations'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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Marrone Bio Innovations ROIC % Chart

Marrone Bio Innovations Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROIC %

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-78.50

-76.13

-68.28

-28.49

-22.39

Marrone Bio Innovations Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
ROIC %	Get a 7-Day Free Trial															-19.57	-14.93	-28.58	-32.81	-37.27

Competitive Comparison of Marrone Bio Innovations's ROIC %

For the Agricultural Inputs subindustry, Marrone Bio Innovations'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.

Marrone Bio Innovations's ROIC % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Marrone Bio Innovations's ROIC % distribution charts can be found below:

* The bar in red indicates where Marrone Bio Innovations's ROIC % falls into.

Marrone Bio Innovations ROIC % Calculation

Marrone Bio Innovations's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROIC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-15.404 * ( 1 - -0.27% )	/	( (61.59	+	76.39)	/ 2 )
=	-15.4455908	/	68.99
=	-22.39 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	81.197	-	9.575	-	( 15.841	-	max(0, 24.228	-	34.26	+	15.841	))
=	61.59

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	87.056	-	13.176	-	( 19.623	-	max(0, 45.188	-	42.678	+	19.623	))
=	76.39

Marrone Bio Innovations's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2022 is calculated as:

	ROIC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	-28.088 * ( 1 - 0.14% )	/	( (76.39	+	74.118)	/ 2 )
=	-28.0486768	/	75.254
=	-37.27 %

where

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	87.056	-	13.176	-	( 19.623	-	max(0, 45.188	-	42.678	+	19.623	))
=	76.39

	Invested Capital		(Q: Mar. 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	))
=	76.214	-	10.844	-	( 9.362	-	max(0, 41.711	-	32.963	+	9.362	))
=	74.118

Note: The Operating Income data used here is four times the quarterly (Mar. 2022) data.

Marrone Bio Innovations (NAS:MBII) 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, Marrone Bio Innovations's WACC % is 5.54%. Marrone Bio Innovations's ROIC % is -28.73% (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.

Marrone Bio Innovations ROIC % Related Terms

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Marrone Bio Innovations (Marrone Bio Innovations) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Marrone Bio Innovations Inc (NAS:MBII) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

7780-420 Brier Creek Parkway,, Raleigh, NC, USA, 27617

Website

https://www.marronebioinnovations.com

Marrone Bio Innovations Inc is a US-based agricultural company engaged in the discovery, development and sale of innovative biological products for crop protection, crop health and crop nutrition. The company produces bio-based pest management and plant health products such as Biopesticides, Bioinsecticides, Bionematicides, Biofungicides, Biostimulants and Bionutrition, among others. It generates key revenue from the sales of Marrone products, mainly Regalia, Grandevo and Venerate.

Executives

Pamela G Marrone	director, officer: CEO and President	C/O MARRONE BIO INNOVATIONS, INC., 2121 SECOND STREET, A-107, DAVIS CA 95618
Ladon Johnson	officer: Interim CFO	C/O MARRONE BIO INNOVATIONS, INC. 7780-420 BRIER CREEK PARWAY RALEIGH NC 27617-7882
Ardsley Ridgecrest Partners Fund, L.p.	other: See Footnote (1)	262 HARBOR DRIVE, 4TH FLOOR, STAMFORD CT 06902
Suping (sue) Cheung	officer: Chief Financial Officer	C/O QUICKLOGIC CORPORATION, SUNNYVALE CA 94089
Matti Tiainen	officer: SVP, International Sales	C/O MARRONE BIO INNOVATIONS, INC. 1540 DREW AVENUE DAVIS CA 95618
Lara L Lee	director	C/O MARRONE BIO INNOVATIONS, INC., 1540 DREW AVENUE, DAVIS CA 95618
Kevin Helash	director, officer: Chief Executive Officer	C/O MARRONE BIO INNOVATIONS, INC. 1540 DREW AVENUE DAVIS CA 95618
Ardsley Advisory Partners Gp Llc	other: See Footnotes(1)(2)	262 HARBOR DRIVE, 4TH FLOOR, STAMFORD CT 06902
Ospraie Management, Llc	director, 10 percent owner, other: (See Remarks)	437 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10022
Ospraie Management, Inc.	director, 10 percent owner, other: (See Remarks)	320 PARK AVENUE, 27TH FLOOR, NEW YORK NY 10022
Ospraie Holding I, L.p.	director, 10 percent owner, other: (See Remarks)	320 PARK AVENUE, 27TH FLOOR, NEW YORK NY 10022
Dwight Anderson	director, 10 percent owner, other: (See Remarks)	C/O OSPRAIE MANAGEMENT, LLC, 320 PARK AVENUE, 27TH FLOOR, NEW YORK NY 10022
Ardsley Healthcare Fund, L.p.	other: See Footnote (1)	C/O ARDSLEY PARTNERS I GP, LLC, 262 HARBOR DRIVE, STAMFORD CT 06902
Ospraie Ag Science Llc	director, 10 percent owner, other: (See Remarks)	C/O DWIGHT ANDERSON 437 MADISON AVENUE, 28TH FLOOR NEW YORK NY 10022
Van Herk Investments B.v.	10 percent owner	LICHTENAUERLAAN 30 ROTTERDAM P7 3062ME