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Esrey Resources (TSXV:ESR.H) ROIC % : -14.44% (As of Jun. 2021)


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What is Esrey Resources 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 %. Esrey Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2021 was -14.44%.

As of today (2024-10-31), Esrey Resources's WACC % is 0.00%. Esrey Resources's ROIC % is 0.00% (calculated using TTM income statement data). Esrey Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Esrey Resources ROIC % Historical Data

The historical data trend for Esrey Resources'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.

Esrey Resources ROIC % Chart

Esrey Resources Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -30.62 -17.80 -93.09 -184.66 -70.38

Esrey Resources Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 - -110.34 -3.51 -19.08 -14.44

Competitive Comparison of Esrey Resources's ROIC %

For the Other Industrial Metals & Mining subindustry, Esrey 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.


Esrey Resources's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Esrey Resources's ROIC % falls into.



Esrey Resources ROIC % Calculation

Esrey Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2020 is calculated as:

ROIC % (A: Sep. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2019 ) + Invested Capital (A: Sep. 2020 ))/ count )
=-0.253 * ( 1 - 0% )/( (0.371 + 0.348)/ 2 )
=-0.253/0.3595
=-70.38 %

where

Esrey Resources's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2021 is calculated as:

ROIC % (Q: Jun. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2021 ) + Invested Capital (Q: Jun. 2021 ))/ count )
=-0.048 * ( 1 - 0% )/( (0.335 + 0.33)/ 2 )
=-0.048/0.3325
=-14.44 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2021) 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.


Esrey Resources  (TSXV:ESR.H) 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, Esrey Resources's WACC % is 0.00%. Esrey Resources'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.


Esrey Resources ROIC % Related Terms

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Esrey Resources Business Description

Traded in Other Exchanges
N/A
Address
1075 West Georgia Street, Suite 1010, Vancouver, BC, CAN, V6E 3C9
Esrey Resources Ltd is a Canada based company focused on the extraction of zinc, lead and other metals from these waste materials in a hydrometallurgical process. Its hydrometallurgical pilot plant, located in Macedonia, is capable to develop hydrometallurgical processing approximately 100 tonnes of feed per annum.

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