Americas Gold And Silver (TSX:USA) ROIC % : -19.17% (As of Sep. 2023)

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What is Americas Gold And Silver 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 %. Americas Gold And Silver's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -19.17%.

As of today (2024-04-27), Americas Gold And Silver's WACC % is 14.78%. Americas Gold And Silver's ROIC % is -16.39% (calculated using TTM income statement data). Americas Gold And Silver earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Americas Gold And Silver ROIC % Historical Data

The historical data trend for Americas Gold And Silver'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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Americas Gold And Silver ROIC % Chart

Americas Gold And Silver Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROIC %

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-6.07

-16.30

-12.17

-32.86

-15.08

Americas Gold And Silver Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROIC %	Get a 7-Day Free Trial															-21.07	-19.53	-11.42	-17.00	-19.17

Competitive Comparison of Americas Gold And Silver's ROIC %

For the Other Industrial Metals & Mining subindustry, Americas Gold And Silver'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.

Americas Gold And Silver's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Americas Gold And Silver's ROIC % falls into.

Americas Gold And Silver ROIC % Calculation

Americas Gold And Silver's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-36.01 * ( 1 - -8.97% )	/	( (275.168	+	245.176)	/ 2 )
=	-39.240097	/	260.172
=	-15.08 %

where

	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	))
=	273.196	-	26.337	-	( 3.712	-	max(0, 58.444	-	30.135	+	3.712	))
=	275.168

	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	))
=	259.228	-	36.761	-	( 2.668	-	max(0, 57.189	-	34.48	+	2.668	))
=	245.176

Americas Gold And Silver's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-47.012 * ( 1 - 0.11% )	/	( (243.458	+	246.519)	/ 2 )
=	-46.9602868	/	244.9885
=	-19.17 %

where

	Invested Capital		(Q: Jun. 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	))
=	256.638	-	37.282	-	( 2.162	-	max(0, 59.666	-	35.564	+	2.162	))
=	243.458

	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	))
=	248.026	-	35.677	-	( 1.204	-	max(0, 59.396	-	25.226	+	1.204	))
=	246.519

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

Americas Gold And Silver (TSX:USA) 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, Americas Gold And Silver's WACC % is 14.78%. Americas Gold And Silver's ROIC % is -16.39% (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.

Americas Gold And Silver ROIC % Related Terms

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Americas Gold And Silver (TSX:USA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Americas Gold And Silver Corp (TSX:USA) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

USAS:USA SZ71:Germany

Address

145 King Street West, Suite 2870, Toronto, ON, CAN, M5H 1J8

Website

https://www.americas-gold.com

Americas Gold And Silver Corp is a mining company is engaged in the acquisition, exploration, development, and production of precious metals mineral properties in Mexico and the United States. The company's primary operating assets are The Cosala operations, The Galena Complex, and Relief Canyon. The company also holds interests in the San Felipe Development Project located in Sonora, Mexico.