Osceola Gold (Osceola Gold) ROIC % : -2.65% (As of Sep. 2023)

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What is Osceola Gold 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 %. Osceola Gold's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -2.65%.

As of today (2024-05-17), Osceola Gold's WACC % is 0.30%. Osceola Gold's ROIC % is -0.94% (calculated using TTM income statement data). Osceola Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Osceola Gold ROIC % Historical Data

The historical data trend for Osceola 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.

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Osceola Gold ROIC % Chart

Osceola Gold Annual Data

Trend

Dec09

Dec10

Dec11

Dec21

Dec22

ROIC %

-61.69

-152.69

-0.63

-0.28

Osceola Gold Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Dec21	Dec22	Mar23	Jun23	Sep23
ROIC %	Get a 7-Day Free Trial											-	-	-0.54	-0.53	-2.65

Competitive Comparison of Osceola Gold's ROIC %

For the Gold subindustry, Osceola 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.

Osceola Gold's ROIC % Distribution in the Metals & Mining Industry

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

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

Osceola Gold ROIC % Calculation

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

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-0.007 * ( 1 - 0% )	/	( (2.075	+	2.911)	/ 2 )
=	-0.007	/	2.493
=	-0.28 %

where

	Invested Capital		(A: Dec. 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	))
=	0.01	-	0.516	-	( 0	-	max(0, 2.581	-	0	+	0	))
=	2.075

	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	))
=	0.016	-	0.539	-	( 0	-	max(0, 3.434	-	0	+	0	))
=	2.911

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

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-0.08 * ( 1 - 0% )	/	( (3.016	+	3.015)	/ 2 )
=	-0.08	/	3.0155
=	-2.65 %

where

	Invested Capital		(Q: Jun. 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	))
=	0.017	-	0.643	-	( 0.001	-	max(0, 3.643	-	0.001	+	0.001	))
=	3.016

	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	))
=	0.033	-	0.786	-	( 0.018	-	max(0, 3.786	-	0.018	+	0.018	))
=	3.015

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

Osceola Gold (OTCPK:OSCI) 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, Osceola Gold's WACC % is 0.30%. Osceola Gold's ROIC % is -0.94% (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.

Osceola Gold ROIC % Related Terms

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