Appia Rare Earths & Uranium (XCNQ:API) ROIC % : -8.30% (As of Dec. 2023)

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What is Appia Rare Earths & Uranium 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 %. Appia Rare Earths & Uranium's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -8.30%.

As of today (2024-05-06), Appia Rare Earths & Uranium's WACC % is 8.60%. Appia Rare Earths & Uranium's ROIC % is -9.01% (calculated using TTM income statement data). Appia Rare Earths & Uranium earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Appia Rare Earths & Uranium ROIC % Historical Data

The historical data trend for Appia Rare Earths & Uranium'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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Appia Rare Earths & Uranium ROIC % Chart

Appia Rare Earths & Uranium Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROIC %

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-221.20

-17.11

-17.70

-15.75

-9.67

Appia Rare Earths & Uranium Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-12.10	-11.42	-4.41	-13.09	-8.30

Competitive Comparison of Appia Rare Earths & Uranium's ROIC %

For the Uranium subindustry, Appia Rare Earths & Uranium'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.

Appia Rare Earths & Uranium's ROIC % Distribution in the Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Appia Rare Earths & Uranium's ROIC % distribution charts can be found below:

* The bar in red indicates where Appia Rare Earths & Uranium's ROIC % falls into.

Appia Rare Earths & Uranium ROIC % Calculation

Appia Rare Earths & Uranium'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 )
=	-2.617 * ( 1 - 13.89% )	/	( (21.14	+	25.478)	/ 2 )
=	-2.2534987	/	23.309
=	-9.67 %

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	))
=	25.654	-	0.211	-	( 4.303	-	max(0, 0.211	-	4.73	+	4.303	))
=	21.14

	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	))
=	27.89	-	0.218	-	( 2.194	-	max(0, 0.218	-	2.543	+	2.194	))
=	25.478

Appia Rare Earths & Uranium's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-2.148 * ( 1 - 0% )	/	( (25.478	+	26.25)	/ 2 )
=	-2.148	/	25.864
=	-8.30 %

where

	Invested Capital		(Q: 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	))
=	27.89	-	0.218	-	( 2.194	-	max(0, 0.218	-	2.543	+	2.194	))
=	25.478

	Invested Capital		(Q: 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	))
=	29.182	-	0.207	-	( 2.865	-	max(0, 0.5	-	3.225	+	2.865	))
=	26.25

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Appia Rare Earths & Uranium (XCNQ:API) 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, Appia Rare Earths & Uranium's WACC % is 8.60%. Appia Rare Earths & Uranium's ROIC % is -9.01% (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.

Appia Rare Earths & Uranium ROIC % Related Terms

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Appia Rare Earths & Uranium (XCNQ:API) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Appia Rare Earths & Uranium Corp (XCNQ:API) » Definitions » ROIC %

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APAAF:USA A0I0:Germany

Address

2 Toronto Street, Suite 500, Toronto, ON, CAN, M5C 2B6

Website

https://www.appiareu.com

Appia Rare Earths & Uranium Corp operates as a mineral exploration company in Canada. It explores uranium and rare earth elements. The company holds interests in Alces Lake rare earth project as well as its Athabasca Basin uranium prospects.