Fox River Resources (XCNQ:FOX) ROIC % : -6,840.00% (As of Jan. 2024)

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What is Fox River Resources 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 %. Fox River Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was -6,840.00%.

As of today (2024-05-01), Fox River Resources's WACC % is 13.28%. Fox River Resources's ROIC % is -15480.00% (calculated using TTM income statement data). Fox River Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fox River Resources ROIC % Historical Data

The historical data trend for Fox River Resources'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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Fox River Resources ROIC % Chart

Fox River Resources Annual Data

Trend

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROIC %

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-5,420.00

-5,780.00

-11,736.00

-10,795.00

-9,806.67

Fox River Resources Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROIC %	Get a 7-Day Free Trial															-2,506.67	-16,840.00	-8,600.00	-29,640.00	-6,840.00

Competitive Comparison of Fox River Resources's ROIC %

For the Other Industrial Metals & Mining subindustry, Fox River Resources'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.

Fox River Resources's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Fox River Resources's ROIC % falls into.

Fox River Resources ROIC % Calculation

Fox River Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2023 is calculated as:

	ROIC % (A: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2022 )	+	Invested Capital (A: Oct. 2023 ))	/ count )
=	-1.471 * ( 1 - 0% )	/	( (0.02	+	0.01)	/ 2 )
=	-1.471	/	0.015
=	-9,806.67 %

where

	Invested Capital		(A: Oct. 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	))
=	0.245	-	0.268	-	( 0.203	-	max(0, 0.268	-	0.225	+	0.203	))
=	0.02

	Invested Capital		(A: Oct. 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	))
=	1.78	-	0.371	-	( 1.716	-	max(0, 0.371	-	1.77	+	1.716	))
=	0.01

Fox River Resources's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROIC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-0.684 * ( 1 - 0% )	/	( (0.01	+	0.01)	/ 2 )
=	-0.684	/	0.01
=	-6,840.00 %

where

	Invested Capital		(Q: Oct. 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	))
=	1.78	-	0.371	-	( 1.716	-	max(0, 0.371	-	1.77	+	1.716	))
=	0.01

	Invested Capital		(Q: Jan. 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	))
=	1.346	-	0.067	-	( 1.306	-	max(0, 0.067	-	1.336	+	1.306	))
=	0.01

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

Fox River Resources (XCNQ:FOX) 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, Fox River Resources's WACC % is 13.28%. Fox River Resources's ROIC % is -15480.00% (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.

Fox River Resources ROIC % Related Terms

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Fox River Resources (XCNQ:FOX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Fox River Resources Corp (XCNQ:FOX) » Definitions » ROIC %

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FXRVF:USA

Address

350 Bay Street, Suite 700, Toronto, ON, CAN, M5H 2S6

Website

https://www.fox-river.ca

Fox River Resources Corp is engaged in the advancement of the Martison Phosphate Project located near Hearst, Ontario. The project entails the construction of a vertically integrated phosphoric acid facility. The plant would utilize the Martison phosphate deposit and sulphuric acid from existing nearby base metal smelters or a sulphuric acid plant built by the company utilizing low-cost sulphur from Western Canada. The acidulation of these two primary inputs would be utilized to create phosphoric acid used to produce products in the fertilizer and industrial phosphate markets.