Placing GrowLife, Inc. (OTCPK:PHOT) shares under the microscope we note that the firm has a current Return on Equity of 6.791606. Simply put, this ratio determines how well the firm uses investment funds to generate profit. This ratio is often considered “the mother of all ratios” as it often reveals how well a company is operating.
In additiona to ROE, investors might also take into consideration some other ratios. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for GrowLife, Inc. (OTCPK:PHOT) is -18.225243. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
The Return on Invested Capital (aka ROIC) for GrowLife, Inc. (OTCPK:PHOT) is -5.081181. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of GrowLife, Inc. (OTCPK:PHOT) is 0.28153. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of GrowLife, Inc. (OTCPK:PHOT) is