SIQ Mountain Industries (TSXV:SIQ.H) ROIC % : 0.00% (As of Feb. 2024)

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What is SIQ Mountain Industries 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 %. SIQ Mountain Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2024 was 0.00%.

As of today (2024-05-24), SIQ Mountain Industries's WACC % is 3.58%. SIQ Mountain Industries's ROIC % is 0.00% (calculated using TTM income statement data). SIQ Mountain Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SIQ Mountain Industries ROIC % Historical Data

The historical data trend for SIQ Mountain Industries'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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SIQ Mountain Industries ROIC % Chart

SIQ Mountain Industries Annual Data

Trend

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

ROIC %

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-209.64

-246.36

-59.24

SIQ Mountain Industries Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROIC %	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of SIQ Mountain Industries's ROIC %

For the Conglomerates subindustry, SIQ Mountain Industries'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.

SIQ Mountain Industries's ROIC % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, SIQ Mountain Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where SIQ Mountain Industries's ROIC % falls into.

SIQ Mountain Industries ROIC % Calculation

SIQ Mountain Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2022 is calculated as:

	ROIC % (A: Aug. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2021 )	+	Invested Capital (A: Aug. 2022 ))	/ count )
=	-0.028 * ( 1 - 0% )	/	( (-6.9388939039072E-18	+	0)	/ 2 )
=	-0.028	/	-3.4694469519536E-18
=	%

where

	Invested Capital		(A: Aug. 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	))
=	0.024	-	0.077	-	( 0.021	-	max(0, 0.077	-	0.024	+	0.021	))
=	-6.9388939039072E-18

	Invested Capital		(A: Aug. 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	))
=	0.005	-	0.087	-	( 0.002	-	max(0, 0.087	-	0.005	+	0.002	))
=	0

SIQ Mountain Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROIC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-0.052 * ( 1 - 0% )	/	( (0	+	0)	/ 2 )
=	-0.052	/	0
=	%

where

	Invested Capital		(Q: Nov. 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	))
=	0.109	-	0.036	-	( 0.108	-	max(0, 0.036	-	0.109	+	0.108	))
=	0

	Invested Capital		(Q: Feb. 2024 )
=	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	))
=	0.089	-	0.029	-	( 0.088	-	max(0, 0.029	-	0.089	+	0.088	))
=	0

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

SIQ Mountain Industries (TSXV:SIQ.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, SIQ Mountain Industries's WACC % is 3.58%. SIQ Mountain Industries'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.

SIQ Mountain Industries ROIC % Related Terms

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SIQ Mountain Industries (TSXV:SIQ.H) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » SIQ Mountain Industries Inc (TSXV:SIQ.H) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

13966 18B Avenue, South Surrey, BC, CAN, V4A 8J1

Website

http://www.siqmountain.com

SIQ Mountain Industries Inc is an early stage development organization focused on the design, engineering, marketing, production and distribution of various proprietary outdoor sports entertainment products. The company offers equipment, apparels accessories which include SiQride, efoil, hoodies, SiQ logo stickers among others.

SIQ Mountain Industries (TSXV:SIQ.H) Headlines

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