ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Karelian Diamond Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2023 was -4.25%.
As of today (2024-09-24), Karelian Diamond Resources's WACC % is 15.21%. Karelian Diamond Resources's ROIC % is -3.30% (calculated using TTM income statement data).
Karelian Diamond Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
* 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 Karelian Diamond Resources's ROIC %
For the Other Precious Metals & Mining subindustry, Karelian Diamond Resources'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.
Karelian Diamond Resources's ROIC % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Karelian Diamond Resources's ROIC % distribution charts can be found below:
* The bar in red indicates where Karelian Diamond Resources's ROIC % falls into.
Karelian Diamond Resources ROIC % Calculation
Karelian Diamond Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Nov. 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.
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, Karelian Diamond Resources's WACC % is 15.21%. Karelian Diamond Resources's ROIC % is -3.30% (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.
Karelian Diamond Resources ROIC % Related Terms
Thank you for viewing the detailed overview of Karelian Diamond Resources's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Karelian Diamond Resources PLC is an Ireland-based company which focuses on the discovery of diamond deposits in Finland. It is engaged in exploring for diamonds and evaluating an existing diamond prospect (diamondiferous kimberlite pipe) in the Karelian Craton of Finland. The company's diamond exploration projects include The Lahtojoki diamond project, The Seitapera diamondiferous kimberlite pipe, and The Riihivaara diamond exploration project which is in Kuopio, Kuhmo, and Riihivaara respectively.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:KDR has been successfully added to your 