Avino Silver & Gold Mines (TSX:ASM) ROIC % : 2.15% (As of Dec. 2023)

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What is Avino Silver & Gold Mines 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 %. Avino Silver & Gold Mines's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 2.15%.

As of today (2024-04-26), Avino Silver & Gold Mines's WACC % is 18.57%. Avino Silver & Gold Mines's ROIC % is 0.09% (calculated using TTM income statement data). Avino Silver & Gold Mines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Avino Silver & Gold Mines ROIC % Historical Data

The historical data trend for Avino Silver & Gold Mines'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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Avino Silver & Gold Mines ROIC % Chart

Avino Silver & Gold Mines Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-4.46

-6.87

-3.85

4.53

0.12

Avino Silver & Gold Mines Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															7.20	1.27	14.79	6.00	2.15

Competitive Comparison of Avino Silver & Gold Mines's ROIC %

For the Other Precious Metals & Mining subindustry, Avino Silver & Gold Mines'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.

Avino Silver & Gold Mines's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Avino Silver & Gold Mines's ROIC % falls into.

Avino Silver & Gold Mines ROIC % Calculation

Avino Silver & Gold Mines's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.16 * ( 1 - 206.29% )	/	( (138.544	+	152.484)	/ 2 )
=	0.170064	/	145.514
=	0.12 %

where

	Invested Capital		(A: Dec. 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	))
=	164.645	-	14.118	-	( 15.276	-	max(0, 22.774	-	34.757	+	15.276	))
=	138.544

	Invested Capital		(A: Dec. 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	))
=	172.181	-	16.091	-	( 3.606	-	max(0, 18.525	-	31.575	+	3.606	))
=	152.484

Avino Silver & Gold Mines'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 )
=	2.508 * ( 1 - -29.06% )	/	( (148.675	+	152.484)	/ 2 )
=	3.2368248	/	150.5795
=	2.15 %

where

	Invested Capital		(Q: Sep. 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	))
=	167.098	-	15.912	-	( 2.511	-	max(0, 18.487	-	28.561	+	2.511	))
=	148.675

	Invested Capital		(Q: Dec. 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	))
=	172.181	-	16.091	-	( 3.606	-	max(0, 18.525	-	31.575	+	3.606	))
=	152.484

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Avino Silver & Gold Mines (TSX:ASM) 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, Avino Silver & Gold Mines's WACC % is 18.57%. Avino Silver & Gold Mines's ROIC % is 0.09% (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.

Avino Silver & Gold Mines ROIC % Related Terms

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Avino Silver & Gold Mines (TSX:ASM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Avino Silver & Gold Mines Ltd (TSX:ASM) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

ASM:USA GV6:Germany

Address

570 Granville Street, Suite 900, Vancouver, BC, CAN, V6C 3P1

Website

https://www.avino.com

Avino Silver & Gold Mines Ltd is a mineral resource company. It is engaged in the exploration, extraction, and processing of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties. The company generates majority of its revenues through the sale of Copper produced from its mines. Its project portfolio includes Avino; San Gonzalo; Oxide Tailings; Bralorne Gold and others.