Barrick Gold (Barrick Gold) ROIC %

: 4.95% (As of Dec. 2023)

View and export this data going back to 1987. Start your Free Trial

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Barrick Gold's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 4.95%.

As of today (2024-04-23), Barrick Gold's WACC % is 7.25%. Barrick Gold's ROIC % is 4.93% (calculated using TTM income statement data). Barrick Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Barrick Gold ROIC % Historical Data

The historical data trend for Barrick Gold'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.

* Premium members only.

Barrick Gold Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

Get a 7-Day Free Trial

5.78

8.34

7.77

4.65

4.95

Barrick Gold Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															3.57	3.19	5.07	6.34	4.95

Competitive Comparison

For the Gold subindustry, Barrick Gold'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.

Barrick Gold ROIC % Distribution

For the Metals & Mining industry and Basic Materials sector, Barrick Gold's ROIC % distribution charts can be found below:

* The bar in red indicates where Barrick Gold's ROIC % falls into.

Barrick Gold ROIC % Calculation

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

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	2810 * ( 1 - 30.6% )	/	( (38861	+	39857)	/ 2 )
=	1950.14	/	39359
=	4.95 %

where

	Invested Capital		(A: Dec. 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	))
=	45965	-	2664	-	( 4440	-	max(0, 3120	-	8465	+	4440	))
=	38861

	Invested Capital		(A: Dec. 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	))
=	45811	-	1806	-	( 4148	-	max(0, 2356	-	7438	+	4148	))
=	39857

Barrick Gold's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	2536 * ( 1 - 22.57% )	/	( (39437	+	39857)	/ 2 )
=	1963.6248	/	39647
=	4.95 %

where

	Invested Capital		(Q: Sep. 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	))
=	45595	-	1897	-	( 4261	-	max(0, 2418	-	7419	+	4261	))
=	39437

	Invested Capital		(Q: Dec. 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	))
=	45811	-	1806	-	( 4148	-	max(0, 2356	-	7438	+	4148	))
=	39857

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

Barrick Gold (NYSE:GOLD) 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, Barrick Gold's WACC % is 7.25%. Barrick Gold's ROIC % is 4.93% (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.

Barrick Gold ROIC % Related Terms

Thank you for viewing the detailed overview of Barrick Gold's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Barrick Gold (Barrick Gold) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Barrick Gold Corp (NYSE:GOLD) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

ABX:Peru ABX.N:Mexico 0R22:UK ABR:Germany ABR:Germany ABR:Germany ABR:Germany ABX:Canada

Address

161 Bay Street, Brookfield Place, Suite 3700, P.O. Box 212, TD Canada Trust Tower, Toronto, ON, CAN, M5J 2S1

Website

https://www.barrick.com

Based in Toronto, Barrick Gold is one of the world's largest gold miners. In 2022, the firm produced nearly 4.1 million attributable ounces of gold and about 440 million pounds of copper. At end 2022, Barrick had about two decades of gold reserves along with significant copper reserves. After buying Randgold in 2019 and combining its Nevada mines in a joint venture with competitor Newmont later that year, it operates mines in 19 countries in the Americas, Africa, the Middle East, and Asia. The company also has growing copper exposure. Its potential Reko Diq project in Pakistan, if developed, could double copper production by the end of the decade.