Juva Life (Juva Life) ROC % : -16.88% (As of Mar. 2023)

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What is Juva Life ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Juva Life's annualized return on capital (ROC %) for the quarter that ended in Mar. 2023 was -16.88%.

As of today (2024-06-08), Juva Life's WACC % is 0.00%. Juva Life's ROC % is 0.00% (calculated using TTM income statement data). Juva Life earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Juva Life ROC % Historical Data

The historical data trend for Juva Life's ROC % 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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Juva Life ROC % Chart

Juva Life Annual Data

Trend

Dec19

Dec20

ROC %

-64.98

-79.75

Juva Life Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Mar22	Jun22	Sep22	Mar23
ROC %	Get a 7-Day Free Trial							-44.75	-57.99	-54.34	-56.56	-16.88

Juva Life ROC % Calculation

Juva Life's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	-11.265 * ( 1 - -0.37% )	/	( (10.005	+	18.352)	/ 2 )
=	-11.3066805	/	14.1785
=	-79.75 %

where

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	6.616	-	0.515	-	( 1.276	-	max(0, 5.438	-	1.534	+	1.276	))
=	10.005

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	15.591	-	1.943	-	( 2.159	-	max(0, 7.507	-	2.803	+	2.159	))
=	18.352

Juva Life's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	-2.924 * ( 1 - -0.07% )	/	( (17.141	+	17.528)	/ 2 )
=	-2.9260468	/	17.3345
=	-16.88 %

where

	Invested Capital		(Q: Sep. 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	))
=	21.43	-	1.857	-	( 3.531	-	max(0, 2.099	-	4.531	+	3.531	))
=	17.141

	Invested Capital		(Q: Mar. 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	))
=	19.946	-	3.12	-	( 0.888	-	max(0, 3.227	-	2.525	+	0.888	))
=	17.528

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) data.

Juva Life (OTCPK:JUVAF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Juva Life's WACC % is 0.00%. Juva Life's ROC % is 0.00% (calculated using TTM income statement data). Juva Life 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 %, ROC % 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.

Juva Life ROC % Related Terms

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Juva Life (Juva Life) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Juva Life Inc (OTCPK:JUVAF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

4VV:Germany JUVA:Canada

Address

885 West Georgia Street, Suite 1400, Vancouver, BC, CAN, V6C 3E8

Website

https://www.juvalife.com

Juva Life Inc business is to acquire, own, and operate various cannabis business in the state of California. The Company operates in two reportable segments i) the resale of merchandise and cannabis-derived products, and ii) cultivation and sale of trim and flowers.