ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Conroy Gold and Natural Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2023 was -2.37%.
As of today (2024-05-11), Conroy Gold and Natural Resources's WACC % is 14.53%. Conroy Gold and Natural Resources's ROIC % is -2.17% (calculated using TTM income statement data).
Conroy Gold and Natural Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Conroy Gold and Natural Resources ROIC % Historical 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.
Competitive Comparison of Conroy Gold and Natural Resources's ROIC %
For the Gold subindustry, Conroy Gold and Natural Resources'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.
Conroy Gold and Natural Resources's ROIC % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Conroy Gold and Natural Resources's ROIC % distribution charts can be found below:
* The bar in red indicates where Conroy Gold and Natural Resources's ROIC % falls into.
Conroy Gold and Natural Resources ROIC % Calculation
Conroy Gold and Natural Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Nov. 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.
Conroy Gold and Natural Resources (LSE:CGNR) 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, Conroy Gold and Natural Resources's WACC % is 14.53%. Conroy Gold and Natural Resources's ROIC % is -2.17% (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.
Conroy Gold and Natural Resources ROIC % Related Terms
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Conroy Gold and Natural Resources (LSE:CGNR) Business Description
Conroy Gold and Natural Resources PLC is a mineral exploration company. It is focused on the exploration and development of gold and a hundred per cent owned licenses in Ireland, within the Longford-Down Massif deposit. The firm's main objective is to make substantial returns for shareholders through the discovery and development of economic gold deposits in the North of Ireland and in Northern Finland. Its projects include gold antimony results from Clontibret, new gold mineralization at Glenish and gold-in bedrock at Slieve Glah. The business operates in two segments being Irish exploration assets: gold exploration assets in Ireland; and Finnish exploration assets: gold exploration assets in Finland.
Conroy Gold and Natural Resources (LSE:CGNR) Headlines
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