The Western Investment Co of Canada (TSXV:WI) ROC % : -9.25% (As of Sep. 2024)

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What is The Western Investment Co of Canada 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 %. The Western Investment Co of Canada's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -9.25%.

As of today (2025-03-16), The Western Investment Co of Canada's WACC % is 1.96%. The Western Investment Co of Canada's ROC % is -5.14% (calculated using TTM income statement data). The Western Investment Co of Canada earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Western Investment Co of Canada ROC % Historical Data

The historical data trend for The Western Investment Co of Canada'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.

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The Western Investment Co of Canada ROC % Chart

The Western Investment Co of Canada Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.13

-1.95

-2.47

-2.57

-7.25

The Western Investment Co of Canada 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															-2.69	-2.46	-3.28	-6.19	-9.25

The Western Investment Co of Canada ROC % Calculation

The Western Investment Co of Canada's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.737 * ( 1 - -90.57% )	/	( (18.434	+	20.331)	/ 2 )
=	-1.4045009	/	19.3825
=	-7.25 %

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	))
=	18.615	-	0.155	-	( 0.026	-	max(0, 0.155	-	0.416	+	0.026	))
=	18.434

	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	))
=	19.864	-	0.358	-	( 0.619	-	max(0, 1.481	-	0.656	+	0.619	))
=	20.331

The Western Investment Co of Canada'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 )
=	-1.86 * ( 1 - 0% )	/	( (19.695	+	20.535)	/ 2 )
=	-1.86	/	20.115
=	-9.25 %

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	))
=	19.999	-	0.298	-	( 0.006	-	max(0, 0.298	-	0.663	+	0.006	))
=	19.695

	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	))
=	21.128	-	0.587	-	( 0.006	-	max(0, 0.587	-	0.739	+	0.006	))
=	20.535

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

The Western Investment Co of Canada (TSXV:WI) 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, The Western Investment Co of Canada's WACC % is 1.96%. The Western Investment Co of Canada's ROC % is -5.14% (calculated using TTM income statement data). The Western Investment Co of Canada 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.

The Western Investment Co of Canada ROC % Related Terms

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The Western Investment Co of Canada Business Description

Industry

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1KC:Germany

Address

6 West Coach Place SW, Calgary, AB, CAN, T1V 2A7

Website

https://www.winv.ca

The Western Investment Co of Canada Ltd is a Canada-based investment company. Its purpose is to create long-term wealth for shareholders by building and maintaining a portfolio of stable and profitable Western-based companies and helping them to grow and prosper. The company's plan of action is to acquire a diversified portfolio of established Western Canadian private businesses and create value through the identification, acquisition, and long-term ownership of private businesses with sustained cash flows and potential for organic growth.

Executives

Scott Tannas	Director, Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Stacey Cross	Senior Officer
Shafeen Ashraf Mawani	Senior Officer
Jennie Polyxeni Moushos	Director
James Francis Dinning	Director

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