Great Western Minerals Group (Great Western Minerals Group) ROIC % : -26.73% (As of Sep. 2014)

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What is Great Western Minerals Group 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 %. Great Western Minerals Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2014 was -26.73%.

As of today (2024-06-25), Great Western Minerals Group's WACC % is 0.00%. Great Western Minerals Group's ROIC % is 0.00% (calculated using TTM income statement data). Great Western Minerals Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Great Western Minerals Group ROIC % Historical Data

The historical data trend for Great Western Minerals Group'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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Great Western Minerals Group ROIC % Chart

Great Western Minerals Group Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROIC %

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-19.98

-22.26

-67.60

-81.65

-51.63

Great Western Minerals Group Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROIC %	Get a 7-Day Free Trial															-47.31	-47.84	-33.20	-37.04	-26.73

Competitive Comparison of Great Western Minerals Group's ROIC %

For the Other Industrial Metals & Mining subindustry, Great Western Minerals Group'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.

Great Western Minerals Group's ROIC % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Great Western Minerals Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Great Western Minerals Group's ROIC % falls into.

Great Western Minerals Group ROIC % Calculation

Great Western Minerals Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROIC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-20.322 * ( 1 - 0.37% )	/	( (39.809	+	38.624)	/ 2 )
=	-20.2468086	/	39.2165
=	-51.63 %

where

	Invested Capital		(A: Dec. 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	))
=	104.623	-	11.336	-	( 53.478	-	max(0, 12.413	-	67.348	+	53.478	))
=	39.809

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	68.094	-	6.955	-	( 24.03	-	max(0, 9.012	-	31.527	+	24.03	))
=	38.624

Great Western Minerals Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2014 is calculated as:

	ROIC % (Q: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Sep. 2014 ))	/ count )
=	-9.556 * ( 1 - 0% )	/	( (37.103	+	34.404)	/ 2 )
=	-9.556	/	35.7535
=	-26.73 %

where

	Invested Capital		(Q: Jun. 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	))
=	55.717	-	6.491	-	( 12.123	-	max(0, 7.158	-	20.691	+	12.123	))
=	37.103

	Invested Capital		(Q: Sep. 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	))
=	52.34	-	8.215	-	( 12.257	-	max(0, 8.809	-	18.53	+	12.257	))
=	34.404

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

Great Western Minerals Group (OTCPK:GWMGF) 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, Great Western Minerals Group's WACC % is 0.00%. Great Western Minerals Group'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.

Great Western Minerals Group ROIC % Related Terms

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Great Western Minerals Group (Great Western Minerals Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Great Western Minerals Group Ltd (OTCPK:GWMGF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit 201B, 2121 Airport Drive, Saskatoon, SK, CAN, S7L 6W5

Website

http://www.gwmg.ca

Great Western Minerals Group Ltd is a Canadian-based exploration and development company, which is engaged in the exploration and development of its rare earth elements (REE) property, and the manufacturing and marketing of products containing REE. The company operates as an integrated rare earth processor which manufactures specialty alloys used in the magnet, battery, defense and aerospace industries. It holds an interest in the Steenkampskraal monazite mine, located approximately 350 kilometers northwest of Cape Town, South Africa. Further, the group also holds an interest in Hoidas Lake rare earth mineral property in Canada.

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