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Banro (XCNQ:BAA.PA.PFD) ROIC % : -0.03% (As of Jun. 2017)


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What is Banro 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 %. Banro's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2017 was -0.03%.

As of today (2024-12-14), Banro's WACC % is 0.00%. Banro's ROIC % is 1.40% (calculated using TTM income statement data). Banro generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Banro ROIC % Historical Data

The historical data trend for Banro'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.

Banro ROIC % Chart

Banro Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.41 0.98 1.94 3.61 -0.31

Banro Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 -1.58 2.71 -4.25 -0.42 -0.03

Competitive Comparison of Banro's ROIC %

For the Gold subindustry, Banro'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.


Banro's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Banro's ROIC % falls into.



Banro ROIC % Calculation

Banro's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROIC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=-2.97 * ( 1 - -0.79% )/( (876.639 + 1066.109)/ 2 )
=-2.993463/971.374
=-0.31 %

where

Banro's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2017 is calculated as:

ROIC % (Q: Jun. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2017 ) + Invested Capital (Q: Jun. 2017 ))/ count )
=-0.28 * ( 1 - 0% )/( (1069.315 + 617.801)/ 2 )
=-0.28/843.558
=-0.03 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) 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.


Banro  (XCNQ:BAA.PA.PFD) 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, Banro's WACC % is 0.00%. Banro's ROIC % is 1.40% (calculated using TTM income statement data). Banro generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Banro 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.


Banro ROIC % Related Terms

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Banro Business Description

Traded in Other Exchanges
N/A
Address
100 King Street West, Suite 7070, 1 First Canadian Place, Toronto, ON, CAN, M5X 1E3
Banro Corp is a Canadian gold mining company. Principally it focuses on exploration, development, and production of mineral properties in the Democratic Republic of the Congo. The company holds two gold producing mines Twangiza mines and Namoya mines and two advancing gold exploration projects which include Lugushwa project and Kamituga project. Twangiza mine property is located approximately 45 kilometers south-southwest of Bukavu in south Kivu Province whereas the Namoya mine property lies at the southern end of the Twangiza-Namoya gold belt in Maniema province. The company's Lugushwa project and Kamituga project, both are located in the southwest city of Bukavu.

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