Flow Beverage (TSX:FLOW) ROIC % : -29.53% (As of Jul. 2024)

Flow Beverage ROIC % Chart

Flow Beverage Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
ROIC %	Get a 7-Day Free Trial															-129.26	-144.53	-186.27	-47.73	-29.53

Competitive Comparison of Flow Beverage's ROIC %

For the Beverages - Non-Alcoholic subindustry, Flow Beverage'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.

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

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

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

Flow Beverage ROIC % Calculation

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

where

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

where

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

Flow Beverage  (TSX:FLOW) 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, Flow Beverage's WACC % is 21.29%. Flow Beverage's ROIC % is -84.95% (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.

Flow Beverage ROIC % Related Terms

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Flow Beverage Business Description