ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Decibel Cannabis Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.02%.
As of today (2026-06-30), Decibel Cannabis Co's WACC % is 4.24%. Decibel Cannabis Co's ROIC % is 3.74% (calculated using TTM income statement data).
Decibel Cannabis Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Decibel Cannabis Co (TSXV:DB) 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, Decibel Cannabis Co's WACC % is 4.24%. Decibel Cannabis Co's ROIC % is 3.74% (calculated using TTM income statement data).
Decibel Cannabis Co 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.
Decibel Cannabis Co ROIC % Related Terms
Decibel Cannabis Co ROIC % Historical Data
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The historical data trend for Decibel Cannabis Co'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, Decibel Cannabis Co'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.
Decibel Cannabis Co ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Decibel Cannabis Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Decibel Cannabis Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Decibel Cannabis Co (TSXV:DB) has a ROIC % of 11.02% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Decibel Cannabis Co and its competitors.
Is Decibel Cannabis Co's ROIC % too high?
Decibel Cannabis Co's current ROIC % is 11.02%. The Drug Manufacturers industry median ROIC % is 4.46. Decibel Cannabis Co's value of 11.02% is 147.1% above this industry median. Overall, Decibel Cannabis Co has a GF Score™ of 44/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Decibel Cannabis Co's ROIC % compare to ZTS and UTHR?
Decibel Cannabis Co's ROIC % of 11.02% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.46. Decibel Cannabis Co's value of 11.02% is 147.1% above this benchmark. 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 4.46, based on 982 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. Decibel Cannabis Co's current ROIC % of 11.02% is 147.1% above the industry median. 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 Decibel Cannabis Co and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Decibel Cannabis Co's current ROIC % is 11.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Decibel Cannabis Co stock overvalued right now?
Based on GuruFocus' analysis, Decibel Cannabis Co (TSXV:DB) is currently considered Fairly Valued. The stock's GF Value™ is C$0.11, compared to a current price of C$0.12 — trading 9.1% above its estimated fair value. The current ROIC % is 11.02% and 147.1% above the Drug Manufacturers industry median of 4.46. Decibel Cannabis Co's overall GF Score™ is 44/100 with 6 warning signs to review. 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 Decibel Cannabis Co (TSXV:DB), the current ROIC % is 11.02% as of Mar. 2026. 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.
Is Decibel Cannabis Co (TSXV:DB) Overvalued in 2026?
Based on GuruFocus' analysis, Decibel Cannabis Co stock appears to be overvalued.
The current stock price of C$0.12 is trading 9.1% above its estimated GF Value™ of C$0.11.
GuruFocus considers Decibel Cannabis Co to be Fairly Valued.
Key valuation signals for TSXV:DB:
ROIC %: 11.02%
GF Value™: C$0.11 vs. price of C$0.12 (9.1% above fair value)
Industry Position: 147.1% above the Drug Manufacturers median
No single metric tells the full story. See the TSXV:DB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Decibel Cannabis Co Inc is engaged in the cannabis operations business. The company is involved in the production, distribution, and sale of recreational cannabis. All the revenues are generated in Canada. The company's revenue is comprised of wholesale sales of both products and services through its production facilities to distributors and licensed cannabis producers and the direct sale of products through its retailer locations to end customers.
44GF Score
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