GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Solis Minerals Ltd (STU:08W) » Definitions » ROIC %

Solis Minerals (STU:08W) ROIC % : -33.00% (As of Aug. 2024)


View and export this data going back to . Start your Free Trial

What is Solis Minerals 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 %. Solis Minerals's annualized return on invested capital (ROIC %) for the quarter that ended in Aug. 2024 was -33.00%.

As of today (2024-12-13), Solis Minerals's WACC % is 30.49%. Solis Minerals's ROIC % is -30.41% (calculated using TTM income statement data). Solis Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Solis Minerals ROIC % Historical Data

The historical data trend for Solis Minerals'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.

* Premium members only.

Solis Minerals ROIC % Chart

Solis Minerals Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -35.95 -16.73 -26.03 -59.80 -34.91

Solis Minerals Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 Aug24
ROIC % 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 -28.83 -61.21 -33.19 -58.35 -33.00

Competitive Comparison of Solis Minerals's ROIC %

For the Copper subindustry, Solis Minerals'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.


Solis Minerals's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Solis Minerals's ROIC % falls into.



Solis Minerals ROIC % Calculation

Solis Minerals's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2023 is calculated as:

ROIC % (A: May. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2022 ) + Invested Capital (A: May. 2023 ))/ count )
=-1.103 * ( 1 - 0% )/( (2.822 + 3.497)/ 2 )
=-1.103/3.1595
=-34.91 %

where

Solis Minerals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Aug. 2024 is calculated as:

ROIC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=-1.644 * ( 1 - 0% )/( (5.088 + 4.877)/ 2 )
=-1.644/4.9825
=-33.00 %

where

Note: The Operating Income data used here is four times the quarterly (Aug. 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.


Solis Minerals  (STU:08W) 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, Solis Minerals's WACC % is 30.49%. Solis Minerals's ROIC % is -30.41% (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.


Solis Minerals ROIC % Related Terms

Thank you for viewing the detailed overview of Solis Minerals's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Solis Minerals Business Description

Traded in Other Exchanges
Address
Unit 3, 32 Harrogate Street, West Leederville, Perth, WA, AUS, 6017
Solis Minerals Ltd is a resource exploration company engaged in the acquisition, exploration, and development of mineral resource properties. The Company operates in a single reportable operating segment being the exploration and development of mineral properties. The company is focused on the acquisition of the Mostazal copper project located in Chile. It also holds an interest in Ilo Este and Ilo Norte Project in Peru.

Solis Minerals Headlines

No Headlines