Magna Gold (Magna Gold) ROIC % : -47.70% (As of Sep. 2022)

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What is Magna 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 %. Magna Gold's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2022 was -47.70%.

As of today (2024-05-16), Magna Gold's WACC % is 0.00%. Magna Gold's ROIC % is 0.00% (calculated using TTM income statement data). Magna Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Magna Gold ROIC % Historical Data

The historical data trend for Magna 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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Magna Gold ROIC % Chart

Magna Gold Annual Data

Trend

Mar18

Mar19

Mar20

Dec21

ROIC %

-35.14

-72.27

13.84

Magna Gold Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROIC %	Get a 7-Day Free Trial														27.62	18.86	-14.42	-56.28	-47.70

Competitive Comparison of Magna Gold's ROIC %

For the Gold subindustry, Magna 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.

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

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

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

Magna Gold ROIC % Calculation

Magna Gold's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROIC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	4.98 * ( 1 - 16.46% )	/	( (2.842	+	57.258)	/ 2 )
=	4.160292	/	30.05
=	13.84 %

where

	Invested Capital		(A: Mar. 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	))
=	3.156	-	0.15	-	( 0.164	-	max(0, 0.15	-	0.903	+	0.164	))
=	2.842

	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	))
=	83.141	-	36.696	-	( 2.068	-	max(0, 44.709	-	33.896	+	2.068	))
=	57.258

Magna Gold's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROIC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-33.528 * ( 1 - 0.28% )	/	( (72.931	+	67.253)	/ 2 )
=	-33.4341216	/	70.092
=	-47.70 %

where

	Invested Capital		(Q: Jun. 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	))
=	88.787	-	52.449	-	( 1.368	-	max(0, 60.48	-	23.887	+	1.368	))
=	72.931

	Invested Capital		(Q: Sep. 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	))
=	77.522	-	55.66	-	( 0.094	-	max(0, 65.28	-	19.889	+	0.094	))
=	67.253

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

Magna Gold (OTCPK:MGLQF) 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, Magna Gold's WACC % is 0.00%. Magna Gold'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.

Magna Gold ROIC % Related Terms

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Magna Gold (Magna Gold) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Magna Gold Corp (OTCPK:MGLQF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

18 King Street East, Suite 902, Toronto, ON, CAN, M5C 1C4

Website

https://www.magnagoldcorp.com

Magna Gold Corp is a Canadian gold company engaged in operations, development, exploration, and acquisition in Mexico. Its primary asset is the San Francisco Gold Mine in Sonora, Mexico, and exploration stage projects include San Judas, La Pima, Mercedes, and others. The majority of its revenue comes from sales of Gold.