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 Canadian Chrome Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -260.53%.
As of today (2024-04-25), The Canadian Chrome Co's WACC % is 9.69%. The Canadian Chrome Co's ROIC % is 50.11% (calculated using TTM income statement data).
The Canadian Chrome Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
The Canadian Chrome Co ROIC % Historical Data
The historical data trend for The Canadian Chrome Co'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.
Competitive Comparison of The Canadian Chrome Co's ROIC %
For the Other Industrial Metals & Mining subindustry, The Canadian Chrome Co'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.
The Canadian Chrome Co's ROIC % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, The Canadian Chrome Co's ROIC % distribution charts can be found below:
* The bar in red indicates where The Canadian Chrome Co's ROIC % falls into.
The Canadian Chrome Co ROIC % Calculation
The Canadian Chrome Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Sep. 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.
The Canadian Chrome Co (XCNQ:CACR.A) 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, The Canadian Chrome Co's WACC % is 9.69%. The Canadian Chrome Co's ROIC % is 50.11% (calculated using TTM income statement data).
The Canadian Chrome Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
The Canadian Chrome Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
The Canadian Chrome Co ROIC % Related Terms
Thank you for viewing the detailed overview of The Canadian Chrome Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Canadian Chrome Co (XCNQ:CACR.A) Business Description
KWG Resources Inc is a Canada-based mineral exploration company. It is engaged in the exploration and evaluation of base and precious metals and in the development of a transportation link to access the areas where these are located. It also has interests in technology relating to the production of chromium iron alloys. The company is focused on the development of chromite deposits in the James Bay Lowlands of Northern Ontario, Canada. Its properties include Black Horse, Koper Lake, and McFaulds Lake. The Company's operations comprise a single reporting operating segment engaged in mineral exploration in Canada.
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