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Nine Mile Metals (Nine Mile Metals) ROIC % : -40.14% (As of Dec. 2023)


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What is Nine Mile 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 %. Nine Mile Metals's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -40.14%.

As of today (2024-05-11), Nine Mile Metals's WACC % is 10.72%. Nine Mile Metals's ROIC % is -26.18% (calculated using TTM income statement data). Nine Mile Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Nine Mile Metals ROIC % Historical Data

The historical data trend for Nine Mile 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.

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Nine Mile Metals ROIC % Chart

Nine Mile Metals Annual Data
Trend Sep19 Sep20 Sep21 Sep22 Sep23
ROIC %
-1,592.59 -1,877.78 -11,287.50 -83.37 -63.02

Nine Mile Metals Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23 Dec23
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 -60.26 -67.86 -65.48 - -40.14

Competitive Comparison of Nine Mile Metals's ROIC %

For the Gold subindustry, Nine Mile 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.


Nine Mile Metals's ROIC % Distribution in the Metals & Mining Industry

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

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



Nine Mile Metals ROIC % Calculation

Nine Mile 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 )
=-2 * ( 1 - 0% )/( (3.113 + 3.234)/ 2 )
=-2/3.1735
=-63.02 %

where

Nine Mile Metals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-1.348 * ( 1 - 0% )/( (3.234 + 3.483)/ 2 )
=-1.348/3.3585
=-40.14 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


Nine Mile Metals  (OTCPK:VMSXF) 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, Nine Mile Metals's WACC % is 10.72%. Nine Mile Metals's ROIC % is -26.18% (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.


Nine Mile Metals ROIC % Related Terms

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Nine Mile Metals (Nine Mile Metals) Business Description

Traded in Other Exchanges
Address
350 - 1650 West 2nd Avenue, Vancouver, BC, CAN, V6J 1H4
Nine Mile Metals Ltd is a gold exploration company focused on acquiring mineral properties. The principal business of the Company is to acquire, explore, and develop mineral properties and ultimately seek earnings by exploiting mineral claims. The company holds an interest in the Millennium Gold Property, Nine-mile brook, California lake, and Canoe lake. It conducts exploration activities in the United States.

Nine Mile Metals (Nine Mile Metals) Headlines

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