MegaWatt Lithium and Battery Metals (STU:WR2) ROIC % : -56.63% (As of Jun. 2024)

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What is MegaWatt Lithium and Battery Metals 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 %. MegaWatt Lithium and Battery Metals's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -56.63%.

As of today (2024-12-14), MegaWatt Lithium and Battery Metals's WACC % is 4.18%. MegaWatt Lithium and Battery Metals's ROIC % is -44.59% (calculated using TTM income statement data). MegaWatt Lithium and Battery Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

MegaWatt Lithium and Battery Metals ROIC % Historical Data

The historical data trend for MegaWatt Lithium and Battery Metals'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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MegaWatt Lithium and Battery Metals ROIC % Chart

MegaWatt Lithium and Battery Metals Annual Data

Trend

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROIC %

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-83.41

-281.97

-39.83

-23.55

MegaWatt Lithium and Battery Metals Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROIC %	Get a 7-Day Free Trial															-23.41	-	-26.97	-109.25	-56.63

Competitive Comparison of MegaWatt Lithium and Battery Metals's ROIC %

For the Other Industrial Metals & Mining subindustry, MegaWatt Lithium and Battery Metals'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.

MegaWatt Lithium and Battery Metals's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where MegaWatt Lithium and Battery Metals's ROIC % falls into.

MegaWatt Lithium and Battery Metals ROIC % Calculation

MegaWatt Lithium and Battery Metals's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROIC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (1.474	+	1.03)	/ 2 )
=	0	/	1.252
=	0.00 %

where

	Invested Capital		(A: Sep. 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	))
=	2.163	-	0.423	-	( 0.578	-	max(0, 0.532	-	0.798	+	0.578	))
=	1.474

	Invested Capital		(A: Sep. 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	))
=	1.134	-	0.291	-	( 0.026	-	max(0, 0.33	-	0.143	+	0.026	))
=	1.03

MegaWatt Lithium and Battery Metals's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-1.176 * ( 1 - 0% )	/	( (1.127	+	3.026)	/ 2 )
=	-1.176	/	2.0765
=	-56.63 %

where

	Invested Capital		(Q: Mar. 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	))
=	1.58	-	0.347	-	( 0.451	-	max(0, 0.439	-	0.545	+	0.451	))
=	1.127

	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	))
=	3.048	-	0.237	-	( 0.053	-	max(0, 0.33	-	0.115	+	0.053	))
=	3.026

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

MegaWatt Lithium and Battery Metals (STU:WR2) 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, MegaWatt Lithium and Battery Metals's WACC % is 4.18%. MegaWatt Lithium and Battery Metals's ROIC % is -44.59% (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.

MegaWatt Lithium and Battery Metals ROIC % Related Terms

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MegaWatt Lithium and Battery Metals Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » MegaWatt Lithium and Battery Metals Corp (STU:WR2) » Definitions » ROIC %

Comparable Companies

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WALRF:USA MEGA:Canada

Address

1055 West Georgia Street, Suite 1500, Vancouver, BC, CAN, V6E 4N7

Website

https://www.megawattmetals.com

MegaWatt Lithium and Battery Metals Corp is involved in the acquisition and exploration of mineral properties in Canada. It holds an interest in the Cobalt Hill property located in the Trail Creek Mining Division in the Province of British Columbia, Canada.

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