Schmitt Industries (Schmitt Industries) ROIC % : -71.68% (As of May. 2022)

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What is Schmitt 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 %. Schmitt Industries's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2022 was -71.68%.

As of today (2024-05-15), Schmitt Industries's WACC % is 0.00%. Schmitt Industries's ROIC % is 0.00% (calculated using TTM income statement data). Schmitt Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Schmitt Industries ROIC % Historical Data

The historical data trend for Schmitt 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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Schmitt Industries ROIC % Chart

Schmitt Industries Annual Data

Trend

May13

May14

May15

May16

May17

May18

May19

May20

May21

May22

ROIC %

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2.00

-18.84

-44.40

-101.69

-57.64

Schmitt Industries Quarterly Data
	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22
ROIC %	Get a 7-Day Free Trial															-79.75	-60.54	-54.83	-59.03	-71.68

Competitive Comparison of Schmitt Industries's ROIC %

For the Scientific & Technical Instruments subindustry, Schmitt 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.

Schmitt Industries's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Schmitt Industries's ROIC % distribution charts can be found below:

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

Schmitt Industries ROIC % Calculation

Schmitt Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2022 is calculated as:

	ROIC % (A: May. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2021 )	+	Invested Capital (A: May. 2022 ))	/ count )
=	-10.616 * ( 1 - -0.51% )	/	( (15.909	+	21.112)	/ 2 )
=	-10.6701416	/	18.5105
=	-57.64 %

where

	Invested Capital		(A: May. 2021 )
=	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	))
=	21.174	-	2.317	-	( 4.033	-	max(0, 4.009	-	6.957	+	4.033	))
=	15.909

	Invested Capital		(A: May. 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	))
=	22.839	-	3.549	-	( 1.051	-	max(0, 5.828	-	4.006	+	1.051	))
=	21.112

Schmitt Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2022 is calculated as:

	ROIC % (Q: May. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2022 )	+	Invested Capital (Q: May. 2022 ))	/ count )
=	-13.712 * ( 1 - -0.09% )	/	( (17.179	+	21.112)	/ 2 )
=	-13.7243408	/	19.1455
=	-71.68 %

where

	Invested Capital		(Q: Feb. 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	))
=	20.353	-	1.875	-	( 1.999	-	max(0, 3.877	-	5.176	+	1.999	))
=	17.179

	Invested Capital		(Q: May. 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	))
=	22.839	-	3.549	-	( 1.051	-	max(0, 5.828	-	4.006	+	1.051	))
=	21.112

Note: The Operating Income data used here is four times the quarterly (May. 2022) data.

Schmitt Industries (OTCPK:SMIT) 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, Schmitt Industries's WACC % is 0.00%. Schmitt 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.

Schmitt Industries ROIC % Related Terms

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Schmitt Industries (Schmitt Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Schmitt Industries Inc (OTCPK:SMIT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2765 North West Nicolai Street, Portland, OR, USA, 97210

Website

https://www.schmittindustries.com

Schmitt Industries Inc is engaged in propane tank monitoring solutions, precision measurement solutions, and ice cream production and distribution. The Company operates as two reportable segments: the Measurement Segment and the Ice Cream Segment. Xact product line includes satellite-focused remote tank monitoring products and related monitoring services for markets in the IoT environment. The Company also manufactures, wholesales, and retails ice cream and related products.

Executives

Dustin Henderson	other: Shareholder	11125 N PARK BLVD, STE 106, SEMINOLE FL 33772
Kristi Michelle Smaha	director	C/O SCHMITT INDUSTRIES, INC., 2765 N.W. NICOLAI STREET, PORTLAND OR 97210-1818
Alexandre Zyngier	director	5700 W. PLANO PARKWAY, SUITE 3600, PLANO TX 75093
Philip Bosco	officer: Chief Financial Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Lillian Tung	director	45 WEST 67TH STREET, 10D, NEW YORK NY 10023
Michael R. Zapata	officer: Chief Executive Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Andrews P Hines	director
Steven Strom	director	2765 NW NICOLAI STREET, PORTLAND OR 97210
Charles Davidson	director	C/O SCHMITT INDUSTRIES, INC., 2765 N.W. NICOLAI STREET, PORTLAND OR 97210
Jamie Michael Schmidt	officer: Chief Financial Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Walter Brown Pistor	10 percent owner	2415 KALAMA RIVER ROAD, KALAMA WA 98625
Regina Walker	officer: Chief Financial Officer	2765 NW NICOLAI STREET, PORTLAND OR 97210
Michael Ellsworth	director	SCHMITT INDUSTRIES, INC., 2765 NW NICOLAI, PORTLAND OR 97210
David Hudson	director	SCHMITT INDUSTRIES, INC., 2765 NW NICOLAI, PORTLAND OR 97210
Maynard E Brown	director	1595 - 19TH STREET, WEST VANCOUVER A1 V7V 3X5