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Silver Dollar Resources (XCNQ:SLV) ROIC % : -5.52% (As of May. 2024)


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What is Silver Dollar 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 %. Silver Dollar Resources's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2024 was -5.52%.

As of today (2024-12-12), Silver Dollar Resources's WACC % is 15.19%. Silver Dollar Resources's ROIC % is -4.86% (calculated using TTM income statement data). Silver Dollar Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Silver Dollar Resources ROIC % Historical Data

The historical data trend for Silver Dollar 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.

* Premium members only.

Silver Dollar Resources ROIC % Chart

Silver Dollar Resources Annual Data
Trend Aug19 Aug20 Aug21 Aug22 Aug23
ROIC %
-105.83 -25.31 -72.09 -13.78 -8.31

Silver Dollar Resources Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
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 -10.40 -3.89 -4.28 -5.77 -5.52

Competitive Comparison of Silver Dollar Resources's ROIC %

For the Other Industrial Metals & Mining subindustry, Silver Dollar 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.


Silver Dollar Resources's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Silver Dollar Resources's ROIC % falls into.



Silver Dollar Resources ROIC % Calculation

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

ROIC % (A: Aug. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2022 ) + Invested Capital (A: Aug. 2023 ))/ count )
=-0.851 * ( 1 - 0% )/( (9.206 + 11.272)/ 2 )
=-0.851/10.239
=-8.31 %

where

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

ROIC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2024 ) + Invested Capital (Q: May. 2024 ))/ count )
=-0.66 * ( 1 - 0% )/( (11.788 + 12.118)/ 2 )
=-0.66/11.953
=-5.52 %

where

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


Silver Dollar Resources  (XCNQ:SLV) 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, Silver Dollar Resources's WACC % is 15.19%. Silver Dollar Resources's ROIC % is -4.86% (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.


Silver Dollar Resources ROIC % Related Terms

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Silver Dollar Resources Business Description

Traded in Other Exchanges
Address
179 - 2945 Jacklin Road, Suite 416, Victoria, BC, CAN, V9B 6J9
Silver Dollar Resources Inc is engaged in the business of mineral exploration and the acquisition of mineral property assets in Canada. Its objective is to locate and develop economic precious and base metal properties of merit and to conduct its exploration programs thereon. Its properties include La Joya Project, Nora Project in Mexico; Longlegged Lake Property and Pakwash Lake Property in Ontario.
Executives
Joseph Jerome Smulders Senior Officer
James Garnet (garry) Clark Director
Blair Lawrence Naughty 10% Security Holder

Silver Dollar Resources Headlines

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