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Silvercorp Metals (TSX:SVM) ROC % : 12.69% (As of Sep. 2024)


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What is Silvercorp Metals ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Silvercorp Metals's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 12.69%.

As of today (2024-12-13), Silvercorp Metals's WACC % is 11.84%. Silvercorp Metals's ROC % is 11.38% (calculated using TTM income statement data). Silvercorp Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Silvercorp Metals ROC % Historical Data

The historical data trend for Silvercorp Metals's ROC % 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.

* Premium members only.

Silvercorp Metals ROC % Chart

Silvercorp Metals Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.13 14.57 11.11 7.15 9.18

Silvercorp Metals Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.10 10.58 4.27 19.26 12.69

Silvercorp Metals ROC % Calculation

Silvercorp Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=85.055 * ( 1 - 28.99% )/( (632.306 + 684.046)/ 2 )
=60.3975555/658.176
=9.18 %

where

Invested Capital(A: Mar. 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))
=926.064 - 50.464 - ( 278.207 - max(0, 56.429 - 299.723+278.207))
=632.306

Invested Capital(A: Mar. 2024 )
=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))
=951.33 - 57.823 - ( 250.268 - max(0, 63.828 - 273.289+250.268))
=684.046

Silvercorp Metals's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=137.648 * ( 1 - 21.77% )/( (689.059 + 1008.31)/ 2 )
=107.6820304/848.6845
=12.69 %

where

Invested Capital(Q: Jun. 2024 )
=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))
=1009.027 - 74.795 - ( 295.67 - max(0, 80.813 - 325.986+295.67))
=689.059

Invested Capital(Q: Sep. 2024 )
=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))
=1329.566 - 101.388 - ( 283.795 - max(0, 107.723 - 327.591+283.795))
=1008.31

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


Silvercorp Metals  (TSX:SVM) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Silvercorp Metals's WACC % is 11.84%. Silvercorp Metals's ROC % is 11.38% (calculated using TTM income statement data). Silvercorp Metals 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 %, ROC % 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.


Silvercorp Metals ROC % Related Terms

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Silvercorp Metals Business Description

Traded in Other Exchanges
Address
1066 West Hastings Street, Suite 1750, Vancouver, BC, CAN, V6E 3X1
Silvercorp Metals Inc is a mineral mining company. It acquires, explores, develops, and mines precious and base metal mineral properties at its producing mines and exploration and development projects in China. The group produces silver, gold, lead, and zinc. The company creates shareholder's value by focusing on generating free cash flow from long-life mines; organic growth through extensive drilling for discovery; equity investments in potential world-class opportunities; ongoing merger and acquisition efforts to unlock value; and long-term commitment to responsible mining and ESG. The Company's producing mines are located in China, and current exploration and development projects are located in China and Mexico.
Executives
Derek Zhihua Liu Senior Officer
Rui Feng Director, Senior Officer
Yikang Liu Director
David Tokpay Kong Director
Lon Eric Shaver Senior Officer
Yong-jae Kim Senior Officer
Gordon Neal Senior Officer
Stephen Paul Simpson Director
Marina Katusa Director
Jialiang Yuan Senior Officer
New Pacific Holdings Corp. Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)