NEO Battery Materials (TSXV:NBM) ROIC % : -449.50% (As of Nov. 2024)

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What is NEO Battery Materials 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 %. NEO Battery Materials's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2024 was -449.50%.

As of today (2025-04-04), NEO Battery Materials's WACC % is 23.23%. NEO Battery Materials's ROIC % is -281.16% (calculated using TTM income statement data). NEO Battery Materials earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NEO Battery Materials ROIC % Historical Data

The historical data trend for NEO Battery Materials'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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NEO Battery Materials ROIC % Chart

NEO Battery Materials Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROIC %

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-476.35

-189.67

-214.61

-189.97

-202.49

NEO Battery Materials Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROIC %	Get a 7-Day Free Trial															-195.63	-305.66	-253.24	-104.47	-449.50

Competitive Comparison of NEO Battery Materials's ROIC %

For the Other Industrial Metals & Mining subindustry, NEO Battery Materials'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.

NEO Battery Materials's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where NEO Battery Materials's ROIC % falls into.

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NEO Battery Materials ROIC % Calculation

NEO Battery Materials's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Feb. 2024 is calculated as:

	ROIC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	-3.33 * ( 1 - -4.47% )	/	( (1.554	+	1.882)	/ 2 )
=	-3.478851	/	1.718
=	-202.49 %

where

	Invested Capital		(A: Feb. 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	))
=	3.296	-	0.179	-	( 1.629	-	max(0, 0.189	-	1.752	+	1.629	))
=	1.554

	Invested Capital		(A: Feb. 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	))
=	2.954	-	0.51	-	( 0.942	-	max(0, 0.558	-	1.12	+	0.942	))
=	1.882

NEO Battery Materials's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Nov. 2024 is calculated as:

	ROIC % (Q: Nov. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2024 )	+	Invested Capital (Q: Nov. 2024 ))	/ count )
=	-7.628 * ( 1 - 0% )	/	( (1.742	+	1.652)	/ 2 )
=	-7.628	/	1.697
=	-449.50 %

where

	Invested Capital		(Q: Aug. 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	))
=	1.924	-	0.483	-	( 0.111	-	max(0, 0.528	-	0.227	+	0.111	))
=	1.742

	Invested Capital		(Q: Nov. 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	))
=	2.491	-	0.491	-	( 0.759	-	max(0, 0.527	-	0.875	+	0.759	))
=	1.652

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

NEO Battery Materials (TSXV:NBM) 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, NEO Battery Materials's WACC % is 23.23%. NEO Battery Materials's ROIC % is -281.16% (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.

NEO Battery Materials ROIC % Related Terms

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NEO Battery Materials Business Description

Industry

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Traded in Other Exchanges

NBMFF:USA

Address

4711 Younge Street, 10th Floor, Toronto, ON, CAN, M2N 6K8

Website

https://www.neobatterymaterials.com

NEO Battery Materials Ltd focuses on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics, and energy storage systems. Its products include NBMSiDE P100, NBMSiDE C100, and NBMSiDE P200.

Executives

Larry Minoru Okada	Director
Sung Bum Huh	Director
Xiao Nan (nancy) Zhao	Senior Officer

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