Captiva Verde Industries (TSXV:AWA.H) ROIC % : -678.45% (As of Sep. 2016)

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What is Captiva Verde Industries 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 %. Captiva Verde Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2016 was -678.45%.

As of today (2024-06-19), Captiva Verde Industries's WACC % is 0.00%. Captiva Verde Industries's ROIC % is 0.00% (calculated using TTM income statement data). Captiva Verde Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Captiva Verde Industries ROIC % Historical Data

The historical data trend for Captiva Verde Industries'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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Captiva Verde Industries ROIC % Chart

Captiva Verde Industries Annual Data

Trend

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Dec15

ROIC %

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-15.48

-48.84

-129.85

-74.95

-741.67

Captiva Verde Industries Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
ROIC %	Get a 7-Day Free Trial															-100.75	-1,032.10	-628.16	-380.78	-678.45

Competitive Comparison of Captiva Verde Industries's ROIC %

For the Farm Products subindustry, Captiva Verde Industries'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.

Captiva Verde Industries's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Captiva Verde Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Captiva Verde Industries's ROIC % falls into.

Captiva Verde Industries ROIC % Calculation

Captiva Verde Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROIC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2013 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-11.978 * ( 1 - 0% )	/	( (0.286	+	2.944)	/ 2 )
=	-11.978	/	1.615
=	-741.67 %

where

	Invested Capital		(A: Sep. 2013 )
=	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	))
=	0.95	-	0.273	-	( 0.391	-	max(0, 0.273	-	0.95	+	0.391	))
=	0.286

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	5.891	-	6.048	-	( 0.336	-	max(0, 6.147	-	3.046	+	0.336	))
=	2.944

Captiva Verde Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2016 is calculated as:

	ROIC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	-18.688 * ( 1 - 0% )	/	( (2.853	+	2.656)	/ 2 )
=	-18.688	/	2.7545
=	-678.45 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	4.148	-	6.69	-	( 0.096	-	max(0, 7.287	-	1.892	+	0.096	))
=	2.853

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	2.441	-	8.312	-	( 0.005	-	max(0, 8.908	-	0.381	+	0.005	))
=	2.656

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

Captiva Verde Industries (TSXV:AWA.H) 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, Captiva Verde Industries's WACC % is 0.00%. Captiva Verde Industries's ROIC % is 0.00% (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.

Captiva Verde Industries ROIC % Related Terms

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Captiva Verde Industries (TSXV:AWA.H) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Captiva Verde Industries Ltd (TSXV:AWA.H) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

78080 Calle Amigo, Suite 201, La Quinta, CA, USA, 92253

Website

http://www.veg.net

Captiva Verde Industries Ltd is primarily involved in the production and sale of organic greens and other organic produce. Its product portfolio comprises baby spinach, kale, lettuce, arugula, kale, chard, and mizuna. The company has two geographic segments - Canada and the United States.

Captiva Verde Industries (TSXV:AWA.H) Headlines

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