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ValOre Metals (FRA:KEQ0) ROIC % : -26.11% (As of Mar. 2024)


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What is ValOre Metals 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 %. ValOre Metals's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -26.11%.

As of today (2024-10-31), ValOre Metals's WACC % is 9.30%. ValOre Metals's ROIC % is -16.16% (calculated using TTM income statement data). ValOre Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


ValOre Metals ROIC % Historical Data

The historical data trend for ValOre Metals'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.

ValOre Metals ROIC % Chart

ValOre Metals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -68.96 -34.03 -52.81 -192.93 -73.36

ValOre Metals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23 Dec23 Mar24
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 -48.59 -49.89 - -42.42 -26.11

Competitive Comparison of ValOre Metals's ROIC %

For the Uranium subindustry, ValOre Metals'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.


ValOre Metals's ROIC % Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, ValOre Metals's ROIC % distribution charts can be found below:

* The bar in red indicates where ValOre Metals's ROIC % falls into.



ValOre Metals ROIC % Calculation

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

ROIC % (A: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2022 ) + Invested Capital (A: Sep. 2023 ))/ count )
=-5.215 * ( 1 - 0% )/( (8.016 + 6.202)/ 2 )
=-5.215/7.109
=-73.36 %

where

ValOre Metals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-1.72 * ( 1 - 0% )/( (6.152 + 7.024)/ 2 )
=-1.72/6.588
=-26.11 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) 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.


ValOre Metals  (FRA:KEQ0) 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, ValOre Metals's WACC % is 9.30%. ValOre Metals's ROIC % is -16.16% (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.


ValOre Metals ROIC % Related Terms

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ValOre Metals Business Description

Traded in Other Exchanges
Address
800 West Pender Street, Suite 1020, Vancouver, BC, CAN, V6C 2V6
ValOre Metals Corp is a Canadian-based exploration-stage company. It focuses on the acquisition, exploration, and development of mineral resources. Angilak, Baffin Gold, and Hatchet Lake are some of the assets that the company possesses. It has two geographical segments that include Canada and Brazil.

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