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Ameritek Ventures (Ameritek Ventures) ROIC % : 9.60% (As of Dec. 2023)


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What is Ameritek Ventures 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 %. Ameritek Ventures's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 9.60%.

As of today (2024-05-12), Ameritek Ventures's WACC % is 8.78%. Ameritek Ventures's ROIC % is 3.14% (calculated using TTM income statement data). Ameritek Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Ameritek Ventures ROIC % Historical Data

The historical data trend for Ameritek Ventures'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.

Ameritek Ventures ROIC % Chart

Ameritek Ventures Annual Data
Trend May11 May12 May13 May14 May15 May16 May17 May18 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -7.20 - -86.08 -14.82 3.20

Ameritek Ventures Quarterly Data
May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.31 3.15 -0.10 -0.10 9.60

Competitive Comparison of Ameritek Ventures's ROIC %

For the Specialty Industrial Machinery subindustry, Ameritek Ventures'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.


Ameritek Ventures's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ameritek Ventures's ROIC % distribution charts can be found below:

* The bar in red indicates where Ameritek Ventures's ROIC % falls into.



Ameritek Ventures ROIC % Calculation

Ameritek Ventures'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 )
=0.127 * ( 1 - 0% )/( (4.111 + 3.827)/ 2 )
=0.127/3.969
=3.20 %

where

Ameritek Ventures'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 )
=0.384 * ( 1 - 0% )/( (4.169 + 3.827)/ 2 )
=0.384/3.998
=9.60 %

where

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

* 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.


Ameritek Ventures  (OTCPK:ATVK) 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, Ameritek Ventures's WACC % is 8.78%. Ameritek Ventures's ROIC % is 3.14% (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.


Ameritek Ventures ROIC % Related Terms

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Ameritek Ventures (Ameritek Ventures) Business Description

Traded in Other Exchanges
N/A
Address
401 Ryland Street, Suite 200A, Reno, NV, USA, 89502
Ameritek Ventures manufactures machinery that is used to manufacture optical fiber preforms. These preforms are then used to produce commercial grade optical fiber. The company's products can be used in the telecommunication industry. Ameritek's equipment provides the preforms that can be used to manufacture fiber optic cables.
Executives
Shaun Passley officer: Chairman, CEO and CFO 201 W. LAKE ST. 135, CH IL 60606

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