ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pharmagreen Biotech's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -49.52%.
As of today (2026-07-01), Pharmagreen Biotech's WACC % is 0.00%. Pharmagreen Biotech's ROIC % is 0.00% (calculated using TTM income statement data).
Pharmagreen Biotech earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Pharmagreen Biotech's WACC % is 0.00%. Pharmagreen Biotech's ROIC % is 0.00% (calculated using TTM income statement data).
Pharmagreen Biotech 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.
Pharmagreen Biotech ROIC % Related Terms
Pharmagreen Biotech ROIC % Historical Data
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The historical data trend for Pharmagreen Biotech'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Pharmagreen Biotech'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.
Pharmagreen Biotech ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Pharmagreen Biotech's ROIC % distribution charts can be found below:
* The bar in red indicates where Pharmagreen Biotech's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Pharmagreen Biotech (PHBI) has a ROIC % of -49.52% 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 Pharmagreen Biotech and its competitors.
Is Pharmagreen Biotech's ROIC % too high?
Pharmagreen Biotech's current ROIC % is -49.52%.
How does Pharmagreen Biotech's ROIC % compare to DVLP and CSTF?
Pharmagreen Biotech's ROIC % of -49.52% 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 Pharmagreen Biotech 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. Pharmagreen Biotech's current ROIC % is -49.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pharmagreen Biotech stock overvalued right now?
Pharmagreen Biotech (PHBI) has a current ROIC % of -49.52%. The current ROIC % is -49.52%. 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 Pharmagreen Biotech (PHBI), the current ROIC % is -49.52% 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.
Pharmagreen Biotech Inc is a biotech science company with specialized products and services in the cannabis industry. The company plans to produce and sell tissue culture plantlets and cannabis oil. Its line of nutraceutical products is a proprietary blend of therapeutic plants and mushrooms. It is developing its business model beyond just cannabis, and is focused on near term revenues from its proprietary blend of therapeutic plants and fungi, a nutraceutical wellness product. Utilizing the Company's expertise in plant genetics, Its transgenic program uses the newest technology available to research and create nutraceuticals, protein-based vaccines, and daily supplements with the potential to improve lives and address a wide variety of disease conditions.
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