Market Cap : 109.68 M | Enterprise Value : 106.51 M | PE Ratio : At Loss | PB Ratio : 0.68 |
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Trilogy Metals's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2022 was -3.80%.
As of today (2022-08-15), Trilogy Metals's WACC % is 9.66%. Trilogy Metals's ROIC % is -5.05% (calculated using TTM income statement data). Trilogy Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Trilogy 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.
For the Other Industrial Metals & Mining subindustry, Trilogy 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.
For the Metals & Mining industry and Basic Materials sector, Trilogy Metals's ROIC % distribution charts can be found below:
* The bar in red indicates where Trilogy Metals's ROIC % falls into.
Trilogy Metals's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Nov. 2021 is calculated as:
ROIC % (A: Nov. 2021 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Nov. 2020 ) | + | Invested Capital (A: Nov. 2021 )) | / count ) |
= | -8.58 * ( 1 - 0% ) | / | ( (173.985 | + | 160.872) | / 2 ) |
= | -8.58 | / | 167.4285 | |||
= | -5.12 % |
where
Invested Capital | (A: Nov. 2020 ) | |||||||||||
= | 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 | )) |
= | 185.265 | - | 0.888 | - | ( 11.125 | - | max(0, 1.046 | - | 11.438 | + | 11.125 | )) |
= | 173.985 |
Invested Capital | (A: Nov. 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 | )) |
= | 167.305 | - | 0.852 | - | ( 6.308 | - | max(0, 1.031 | - | 6.612 | + | 6.308 | )) |
= | 160.872 |
Trilogy Metals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2022 is calculated as:
ROIC % (Q: May. 2022 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Feb. 2022 ) | + | Invested Capital (Q: May. 2022 )) | / count ) |
= | -5.984 * ( 1 - 0% ) | / | ( (158.975 | + | 156.356) | / 2 ) |
= | -5.984 | / | 157.6655 | |||
= | -3.80 % |
where
Invested Capital | (Q: Feb. 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 | )) |
= | 163.895 | - | 0.571 | - | ( 4.847 | - | max(0, 0.757 | - | 5.106 | + | 4.847 | )) |
= | 158.975 |
Invested Capital | (Q: May. 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 | )) |
= | 160.299 | - | 0.553 | - | ( 3.497 | - | max(0, 0.745 | - | 4.135 | + | 3.497 | )) |
= | 156.356 |
Note: The Operating Income data used here is four times the quarterly (May. 2022) 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.
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, Trilogy Metals's WACC % is 9.66%. Trilogy Metals's ROIC % is -5.05% (calculated using TTM income statement data).
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.
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Paulson & Co. Inc. | 10 percent owner | 1133 AVENUE OF THE AMERICAS 33RD FLOOR NEW YORK NY 10036 |
Gowans James | director | C/O TRILOGY METALS INC. SUITE 1150, 609 GRANVILLE STREET VANCOUVER A1 V7Y 1G5 |
South32 International Investment Holdings Proprietary Ltd | 10 percent owner | LEVEL 35, 108 ST GEORGES TERRACE PERTH C3 WA 6000 |
South32 Ltd | 10 percent owner | LEVEL 32 125 ST GEORGES TERRACE PERTH C3 6000 |
Hensley William L. Iggiagruk | director | C/O TRILOGY METALS INC. SUITE 1150, 609 GRANVILLE STREET VANCOUVER A1 V7Y 1G5 |
Walters Diana J | director | 5430 LBJ FREEWAY SUITE 1800 DALLAS TX 75240 |
Esof Gp Ltd. | 10 percent owner, other: Possible Member of 10% Group | C/O THE ELECTRUM GROUP LLC 700 MADISON AVENUE, 5TH FLOOR NEW YORK NY 10065 |
Electrum Strategic Opportunities Fund L.p. | 10 percent owner, other: Possible Member of 10% Group | C/O THE ELECTRUM GROUP LLC 700 MADISON AVENUE, 5TH FLOOR NEW YORK NY 10065 |
Oneill Philip | director | C/O NOVACOPPER INC. SUITE 1950, 777 DUNSMUIR STREET VANCOUVER A1 V7Y 1K4 |
Gold First Investments Ltd. | 10 percent owner | C/O UNIT 801-2, 8/F, TUNG HIP COMM. BLDG 244-248 DES VOEUX ROAD CENTRAL SHEUNG WAN K3 0000 |
Notela Resource Advisors Ltd. | 10 percent owner | 819 22ND AVENUE NW CALGARY A0 T2M 1P3 |
Hayden William Beckwith | director | C/O TRILOGY METALS INC. SUITE 1950, 777 DUNSMUIR STREET VANCOUVER A1 V7Y 1K4 |
Grat Holdings Llc | 10 percent owner | 535 MADISON AVENUE, 12TH FLOOR NEW YORK NY 10022 |
Teg Global Gp Ltd. | 10 percent owner | 535 MADISON AVENUE, 11TH FLOOR NEW YORK NY 10022 |
Leopard Holdings Llc | 10 percent owner | 535 MADISON AVENUE, 12TH FLOOR NEW YORK NY 10022 |
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