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First Majestic Silver (TSX:AG) ROIC % : 22.00% (As of Sep. 2024)


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What is First Majestic Silver 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 %. First Majestic Silver's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 22.00%.

As of today (2024-12-13), First Majestic Silver's WACC % is 10.56%. First Majestic Silver's ROIC % is -2.15% (calculated using TTM income statement data). First Majestic Silver earns returns that do not match up to its cost of capital. It will destroy value as it grows.


First Majestic Silver ROIC % Historical Data

The historical data trend for First Majestic Silver'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.

First Majestic Silver ROIC % Chart

First Majestic Silver Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.92 4.36 -0.69 -5.58 -2.23

First Majestic Silver Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -2.53 1.63 -2.74 -3.61 22.00

Competitive Comparison of First Majestic Silver's ROIC %

For the Silver subindustry, First Majestic Silver'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.


First Majestic Silver's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where First Majestic Silver's ROIC % falls into.



First Majestic Silver ROIC % Calculation

First Majestic Silver's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-76.011 * ( 1 - 31.04% )/( (2432.642 + 2267.593)/ 2 )
=-52.4171856/2350.1175
=-2.23 %

where

Invested Capital(A: Dec. 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))
=2866.447 - 181.17 - ( 252.635 - max(0, 227.412 - 503.038+252.635))
=2432.642

Invested Capital(A: Dec. 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))
=2651.478 - 131.717 - ( 252.168 - max(0, 161.177 - 414.631+252.168))
=2267.593

First Majestic Silver's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=41.132 * ( 1 - -1117.78% )/( (2307.429 + 2246.78)/ 2 )
=500.8972696/2277.1045
=22.00 %

where

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))
=2723.237 - 127.214 - ( 288.594 - max(0, 153.448 - 468.578+288.594))
=2307.429

Invested Capital(Q: Sep. 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))
=2678.715 - 135.651 - ( 296.284 - max(0, 158.989 - 481.688+296.284))
=2246.78

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


First Majestic Silver  (TSX:AG) 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, First Majestic Silver's WACC % is 10.56%. First Majestic Silver's ROIC % is -2.15% (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.


First Majestic Silver ROIC % Related Terms

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First Majestic Silver Business Description

Address
925 West Georgia Street, Suite 1800, Vancouver, BC, CAN, V6C 3L2
First Majestic Silver Corp is engaged in the production, development, exploration, and acquisition of mineral properties with a focus on silver and gold production in North America. It owns three producing mines, in Mexico consisting of the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.
Executives
Samir Devendra Patel Senior Officer
Cory Christopher Anderson Senior Officer
Rose Marjorie Co Director
Gonzalo Ariel Mercado Senior Officer
Colin Bower Senior Officer
Keith Neumeyer Director, Senior Officer
Mani Alkhafaji Senior Officer
Steven Holmes Senior Officer
Todd Anthony Senior Officer
Andrew Winston Poon Senior Officer
Robert A. Mccallum Director
Connie Lillico Senior Officer
Jill Anne Arias Senior Officer
Jose Ramon Hernandez Aguilar Senior Officer
William James Mallory Senior Officer