ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Arctic Star Exploration's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was -5.64%.
As of today (2026-07-06), Arctic Star Exploration's WACC % is 2.84%. Arctic Star Exploration's ROIC % is -6.90% (calculated using TTM income statement data).
Arctic Star Exploration earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Arctic Star Exploration (TSXV:ADD) 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, Arctic Star Exploration's WACC % is 2.84%. Arctic Star Exploration's ROIC % is -6.90% (calculated using TTM income statement data).
Arctic Star Exploration earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
* 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.
For the Other Precious Metals & Mining subindustry, Arctic Star Exploration'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.
Arctic Star Exploration ROIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Arctic Star Exploration's ROIC % distribution charts can be found below:
* The bar in red indicates where Arctic Star Exploration's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Arctic Star Exploration (TSXV:ADD) has a ROIC % of -5.64% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Arctic Star Exploration and its competitors.
Is Arctic Star Exploration's ROIC % too high?
Arctic Star Exploration's current ROIC % is -5.64%.
How does Arctic Star Exploration's ROIC % compare to MINR and AUMN?
Arctic Star Exploration's ROIC % of -5.64% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Metals & Mining company?
A good ROIC % depends on the Metals & Mining industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Arctic Star Exploration and its competitors. Arctic Star Exploration's current ROIC % is -5.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arctic Star Exploration stock overvalued right now?
Arctic Star Exploration (TSXV:ADD) has a current ROIC % of -5.64%. The current ROIC % is -5.64%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Arctic Star Exploration (TSXV:ADD), the current ROIC % is -5.64% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Arctic Star Exploration Corp is a natural resource company engaged in the acquisition, exploration, and development of mineral properties. Some of the projects of the company are the Timantti diamond project, Diagras diamond project and others. It has one reportable operating segment which is mineral exploration It has a business presence in Canada and Finland.
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