Gold and GemStone Mining (Gold and GemStone Mining) ROIC % : -236.82% (As of Oct. 2014)

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What is Gold and GemStone Mining 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 %. Gold and GemStone Mining's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2014 was -236.82%.

As of today (2024-05-05), Gold and GemStone Mining's WACC % is 0.00%. Gold and GemStone Mining's ROIC % is 0.00% (calculated using TTM income statement data). Gold and GemStone Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gold and GemStone Mining ROIC % Historical Data

The historical data trend for Gold and GemStone Mining'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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Gold and GemStone Mining ROIC % Chart

Gold and GemStone Mining Annual Data

Trend

Jan10

Jan11

Jan12

ROIC %

-280.00

Gold and GemStone Mining Quarterly Data
	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Apr14	Jul14	Oct14
ROIC %	Get a 7-Day Free Trial														-121.74	-209.25	-199.39	-1.44	-236.82

Competitive Comparison of Gold and GemStone Mining's ROIC %

For the Marine Shipping subindustry, Gold and GemStone Mining'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.

Gold and GemStone Mining's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Gold and GemStone Mining's ROIC % distribution charts can be found below:

* The bar in red indicates where Gold and GemStone Mining's ROIC % falls into.

Gold and GemStone Mining ROIC % Calculation

Gold and GemStone Mining's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2012 is calculated as:

	ROIC % (A: Jan. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2011 )	+	Invested Capital (A: Jan. 2012 ))	/ count )
=	-0.028 * ( 1 - 0% )	/	( (0	+	0.01)	/ 1 )
=	-0.028	/	0.01
=	-280.00 %

where

	Invested Capital		(A: Jan. 2011 )
=	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	))
=	0.016	-	0.009	-	( 0.008	-	max(0, 0.009	-	0.016	+	0.008	))
=	0

	Invested Capital		(A: Jan. 2012 )
=	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	))
=	0	-	0.007	-	( 0	-	max(0, 0.017	-	0	+	0	))
=	0.01

Gold and GemStone Mining's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Oct. 2014 is calculated as:

	ROIC % (Q: Oct. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2014 )	+	Invested Capital (Q: Oct. 2014 ))	/ count )
=	-0.656 * ( 1 - 0% )	/	( (0.301	+	0.253)	/ 2 )
=	-0.656	/	0.277
=	-236.82 %

where

	Invested Capital		(Q: Jul. 2014 )
=	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	))
=	0.302	-	0	-	( 0.001	-	max(0, 0.002	-	0.302	+	0.001	))
=	0.301

	Invested Capital		(Q: Oct. 2014 )
=	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	))
=	0.001	-	0.079	-	( 0	-	max(0, 0.332	-	0.001	+	0	))
=	0.253

Note: The Operating Income data used here is four times the quarterly (Oct. 2014) data.

Gold and GemStone Mining (OTCPK:GGSM) 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, Gold and GemStone Mining's WACC % is 0.00%. Gold and GemStone Mining's ROIC % is 0.00% (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.

Gold and GemStone Mining ROIC % Related Terms

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Gold and GemStone Mining (Gold and GemStone Mining) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Gold and GemStone Mining Inc (OTCPK:GGSM) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jln. Jend. S. Parman Kav. 22-24, Grand Slipi Tower, Jakarta, IDN, 11480

Website

https://www.ggsmglobal.com

Gold and GemStone Mining Inc is an exploration stage company. It is engaged in the acquisition, exploration, and development of gold and other silver properties. The company's mining claims include British Columbia Canada, Sinaloa, Mexico for gold and rare earth elements. Its project includes Chihuahua and Gringo Viejo project in Mexico. The company is also engaged in the charter boat business in the Mentawai Islands and Beyond.