Live Energy Minerals (XCNQ:LIVE) ROIC % : -6.68% (As of Jan. 2024)

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What is Live Energy Minerals 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 %. Live Energy Minerals's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was -6.68%.

As of today (2024-05-26), Live Energy Minerals's WACC % is 9.70%. Live Energy Minerals's ROIC % is -9.85% (calculated using TTM income statement data). Live Energy Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Live Energy Minerals ROIC % Historical Data

The historical data trend for Live Energy Minerals'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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Live Energy Minerals ROIC % Chart

Live Energy Minerals Annual Data

Trend

Oct21

Oct22

Oct23

ROIC %

-22.81

-28.35

-9.94

Live Energy Minerals Quarterly Data
	Apr21	Jul21	Oct21	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROIC %	Get a 7-Day Free Trial						-6.57	-10.92	-8.69	-13.23	-6.68

Competitive Comparison of Live Energy Minerals's ROIC %

For the Gold subindustry, Live Energy Minerals'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.

Live Energy Minerals's ROIC % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Live Energy Minerals's ROIC % falls into.

Live Energy Minerals ROIC % Calculation

Live Energy Minerals'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 )
=	-0.117 * ( 1 - 0% )	/	( (1.156	+	1.198)	/ 2 )
=	-0.117	/	1.177
=	-9.94 %

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	))
=	1.516	-	0.088	-	( 0.352	-	max(0, 0.088	-	0.36	+	0.352	))
=	1.156

	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	))
=	1.595	-	0.053	-	( 0.383	-	max(0, 0.053	-	0.397	+	0.383	))
=	1.198

Live Energy Minerals'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 )
=	-0.08 * ( 1 - 0% )	/	( (1.198	+	1.199)	/ 2 )
=	-0.08	/	1.1985
=	-6.68 %

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	))
=	1.595	-	0.053	-	( 0.383	-	max(0, 0.053	-	0.397	+	0.383	))
=	1.198

	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	))
=	1.558	-	0.055	-	( 0.339	-	max(0, 0.055	-	0.359	+	0.339	))
=	1.199

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

Live Energy Minerals (XCNQ:LIVE) 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, Live Energy Minerals's WACC % is 9.70%. Live Energy Minerals's ROIC % is -9.85% (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.

Live Energy Minerals ROIC % Related Terms

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Live Energy Minerals (XCNQ:LIVE) Business Description

Industry

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GTREF:USA

Address

810 - 789 West Pender Street, Vancouver, BC, CAN, V6C 1H2

Website

https://www.liveenergyminerals.com

Live Energy Minerals Corp is an exploration of resource properties. It holds interests in the Skygold Project located in the Cariboo Placer Region in British Columbia and also has the McDermitt Lithium Property. The company has one business segment the exploration of resource properties, in two geographic locations Canada and the United States.