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STKL (SunOpta) ROIC % : 1.42% (As of Sep. 2024)


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What is SunOpta 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 %. SunOpta's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 1.42%.

As of today (2024-12-15), SunOpta's WACC % is 9.63%. SunOpta's ROIC % is 3.24% (calculated using TTM income statement data). SunOpta earns returns that do not match up to its cost of capital. It will destroy value as it grows.


SunOpta ROIC % Historical Data

The historical data trend for SunOpta'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.

* Premium members only.

SunOpta ROIC % Chart

SunOpta Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.49 1.39 22.08 2.27 1.58

SunOpta Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 0.85 2.73 5.58 2.70 1.42

Competitive Comparison of SunOpta's ROIC %

For the Beverages - Non-Alcoholic subindustry, SunOpta'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.


SunOpta's ROIC % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, SunOpta's ROIC % distribution charts can be found below:

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



SunOpta ROIC % Calculation

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

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=8.833 * ( 1 - -17.54% )/( (758.337 + 554.872)/ 2 )
=10.3823082/656.6045
=1.58 %

where

SunOpta's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=8.344 * ( 1 - -0.42% )/( (598.612 + 581.391)/ 2 )
=8.3790448/590.0015
=1.42 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

* 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.


SunOpta  (NAS:STKL) 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, SunOpta's WACC % is 9.63%. SunOpta's ROIC % is 3.24% (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.


SunOpta ROIC % Related Terms

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SunOpta Business Description

Traded in Other Exchanges
Address
7078 Shady Oak Road, Eden Prairie, MN, USA, 55344
SunOpta Inc is a Canadian company that focuses on a healthy product portfolio. The company is a manufacturer for leading natural and private label brands and also produces its own propriety brands, including SOWN, Dream and West Life. The core of its product portfolio is a range of plant-based beverages, including oat, almond, soy, coconut and rice milks and creamers, which have a favorable climate profile relative to traditional dairy milks in terms of lower carbon emissions and water usage. Their plant-based offerings include non-genetically modified, organic, and gluten-free products. The consumer products portfolio also includes protein shakes, teas, broths, and fruit snacks.
Executives
Rebecca Fisher director 837 DEWBERRY LANE, FAIRVIEW TX 75069
Robert Duchscher officer: Chief Information Officer 7301 OHMS LANE, SUITE 600, EDINA MN 55439
Bryan P Clark officer: SVP Research Development & QA 7078 SHADY OAK ROAD, EDEN PRAIRIE MN 55344
Joseph Ennen director, officer: CEO SUNOPTA, 7301 OHMS LANE, SUITE 600, EDINA MN 55439
Greg Gaba officer: Chief Financial Officer 7078 SHADY OAK ROAD, EDEN PRAIRIE MN 55344
Lovas Katrina Houde director 9 SCHOLFIELD AVENUE, TORONTO, ONTARIO CANADA A6 00000
Chad Hagen officer: Chief Customer Officer 7078 SHADY OAK ROAD, EDEN PRAIRIE MN 55344
Diego Reynoso director 7078 SHADY OAK ROAD, EDEN PRAIRIE MN 55344
Mike Buick officer: SVP, Beverage and Snack 7301 OHMS LANE SUITE 600, EDINA MN 55439
David Largey officer: Chief Quality Officer 7301 OHMS LANE, SUITE 600, EDINA MN 55439
Barend Reijn officer: General Manager of CPG Fruit 7301 OHMS LANE, SUITE 600, EDINA MN 55439
Jill Barnett officer: General Counsel SUNOPTA INC., 7301 OHMS LANE, SUITE 600, EDINA MN 55439
Engaged Capital Llc 10 percent owner 610 NEWPORT CENTER DRIVE, SUITE 950, NEWPORT BEACH CA 92660
Chris Whitehair officer: SVP, Operations 7301 OHMS LANE SUITE 600, EDINA MN 55439
Mahes Wickramasinghe director 2334 MISSISSAUGA ROAD, MISSISSAUGA A6 L5H2L1