TOBAF (TAAT Global Alternatives) ROIC % : -0.95% (As of Jul. 2024)

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What is TAAT Global Alternatives 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 %. TAAT Global Alternatives's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2024 was -0.95%.

As of today (2024-12-15), TAAT Global Alternatives's WACC % is 10.77%. TAAT Global Alternatives's ROIC % is -20.11% (calculated using TTM income statement data). TAAT Global Alternatives earns returns that do not match up to its cost of capital. It will destroy value as it grows.

TAAT Global Alternatives ROIC % Historical Data

The historical data trend for TAAT Global Alternatives'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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TAAT Global Alternatives ROIC % Chart

TAAT Global Alternatives Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROIC %

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-227.36

-1,055.34

-715.88

-201.79

-73.62

TAAT Global Alternatives Quarterly Data
	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
ROIC %	Get a 7-Day Free Trial															-142.51	-31.14	-23.60	-14.09	-0.95

Competitive Comparison of TAAT Global Alternatives's ROIC %

For the Tobacco subindustry, TAAT Global Alternatives'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.

TAAT Global Alternatives's ROIC % Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, TAAT Global Alternatives's ROIC % distribution charts can be found below:

* The bar in red indicates where TAAT Global Alternatives's ROIC % falls into.

TAAT Global Alternatives ROIC % Calculation

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

	ROIC % (A: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2022 )	+	Invested Capital (A: Oct. 2023 ))	/ count )
=	-6.691 * ( 1 - -1.1% )	/	( (11.271	+	7.107)	/ 2 )
=	-6.764601	/	9.189
=	-73.62 %

where

	Invested Capital		(A: Oct. 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	))
=	13.577	-	1.811	-	( 0.495	-	max(0, 4.405	-	7.803	+	0.495	))
=	11.271

	Invested Capital		(A: Oct. 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	))
=	9.789	-	3.57	-	( 0.391	-	max(0, 7.926	-	7.038	+	0.391	))
=	7.107

TAAT Global Alternatives's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2024 is calculated as:

	ROIC % (Q: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-0.044 * ( 1 - 0% )	/	( (4.703	+	4.56)	/ 2 )
=	-0.044	/	4.6315
=	-0.95 %

where

	Invested Capital		(Q: Apr. 2024 )
=	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	))
=	7.667	-	3.203	-	( 0.104	-	max(0, 7.244	-	7.005	+	0.104	))
=	4.703

	Invested Capital		(Q: Jul. 2024 )
=	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	))
=	7.746	-	3.49	-	( 0.214	-	max(0, 7.399	-	7.095	+	0.214	))
=	4.56

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

TAAT Global Alternatives (OTCPK:TOBAF) 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, TAAT Global Alternatives's WACC % is 10.77%. TAAT Global Alternatives's ROIC % is -20.11% (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.

TAAT Global Alternatives ROIC % Related Terms

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TAAT Global Alternatives Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » TAAT Global Alternatives Inc (OTCPK:TOBAF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

2TP0:Germany TAAT:Canada

Address

1075 West Georgia Street, Suite 1890, Vancouver, BC, CAN, V6E 3C9

Website

https://www.taatglobal.com

TAAT Global Alternatives Inc is a Canada-based company, which develops, manufactures, and distributes alternative product categories such as tobacco, hemp, and other emerging CPG segments. The company has two reportable segments, the sale of non-tobacco and tobacco products. It generates the majority of its revenue from the tobacco products segment.