E-Tech Resources (TSXV:REE) ROIC % : -14.31% (As of Dec. 2023)

View and export this data going back to 2018. Start your Free Trial

What is E-Tech 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 %. E-Tech Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -14.31%.

As of today (2024-06-08), E-Tech Resources's WACC % is 40.30%. E-Tech Resources's ROIC % is -18.57% (calculated using TTM income statement data). E-Tech Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

E-Tech Resources ROIC % Historical Data

The historical data trend for E-Tech 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.

E-Tech Resources ROIC % Chart

E-Tech Resources Annual Data

Trend

Apr18

Apr19

Apr20

Apr21

Mar22

Mar23

ROIC %

Get a 7-Day Free Trial

-33.31

-28.28

E-Tech Resources Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-21.74	-22.37	-19.49	-18.43	-14.31

Competitive Comparison of E-Tech Resources's ROIC %

For the Other Industrial Metals & Mining subindustry, E-Tech 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.

E-Tech Resources's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where E-Tech Resources's ROIC % falls into.

E-Tech Resources ROIC % Calculation

E-Tech Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-1.143 * ( 1 - 0% )	/	( (3.614	+	4.47)	/ 2 )
=	-1.143	/	4.042
=	-28.28 %

where

	Invested Capital		(A: Mar. 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	))
=	5.812	-	0.4	-	( 1.798	-	max(0, 0.4	-	2.215	+	1.798	))
=	3.614

	Invested Capital		(A: Mar. 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	))
=	4.983	-	0.365	-	( 0.321	-	max(0, 0.365	-	0.513	+	0.321	))
=	4.47

E-Tech Resources'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 )
=	-0.676 * ( 1 - 0% )	/	( (4.643	+	4.804)	/ 2 )
=	-0.676	/	4.7235
=	-14.31 %

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	))
=	5.372	-	0.44	-	( 0.644	-	max(0, 0.44	-	0.729	+	0.644	))
=	4.643

	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	))
=	5.235	-	0.437	-	( 0.318	-	max(0, 0.437	-	0.431	+	0.318	))
=	4.804

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

E-Tech Resources (TSXV:REE) 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, E-Tech Resources's WACC % is 40.30%. E-Tech Resources's ROIC % is -18.57% (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.

E-Tech Resources ROIC % Related Terms

Thank you for viewing the detailed overview of E-Tech Resources's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.