Treasure & Shipwreck Recovery (Treasure & Shipwreck Recovery) ROIC % : -35.01% (As of Jan. 2024)

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What is Treasure & Shipwreck Recovery 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 %. Treasure & Shipwreck Recovery's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was -35.01%.

As of today (2024-05-13), Treasure & Shipwreck Recovery's WACC % is 36.48%. Treasure & Shipwreck Recovery's ROIC % is -74.38% (calculated using TTM income statement data). Treasure & Shipwreck Recovery earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Treasure & Shipwreck Recovery ROIC % Historical Data

The historical data trend for Treasure & Shipwreck Recovery'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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Treasure & Shipwreck Recovery ROIC % Chart

Treasure & Shipwreck Recovery Annual Data

Trend

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROIC %

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-120.99

-131.85

-74.02

-79.21

-51.41

Treasure & Shipwreck Recovery 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															-6.92	-81.89	-110.78	-66.47	-35.01

Competitive Comparison of Treasure & Shipwreck Recovery's ROIC %

For the Specialty Business Services subindustry, Treasure & Shipwreck Recovery'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.

Treasure & Shipwreck Recovery's ROIC % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Treasure & Shipwreck Recovery's ROIC % distribution charts can be found below:

* The bar in red indicates where Treasure & Shipwreck Recovery's ROIC % falls into.

Treasure & Shipwreck Recovery ROIC % Calculation

Treasure & Shipwreck Recovery's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Apr. 2023 is calculated as:

	ROIC % (A: Apr. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2022 )	+	Invested Capital (A: Apr. 2023 ))	/ count )
=	-0.464 * ( 1 - 0% )	/	( (0.887	+	0.918)	/ 2 )
=	-0.464	/	0.9025
=	-51.41 %

where

	Invested Capital		(A: Apr. 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	))
=	0.08	-	0.097	-	( 0.047	-	max(0, 0.951	-	0.047	+	0.047	))
=	0.887

	Invested Capital		(A: Apr. 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	))
=	0.369	-	0.412	-	( 0.207	-	max(0, 1.168	-	0.207	+	0.207	))
=	0.918

Treasure & Shipwreck Recovery'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 )
=	-0.3 * ( 1 - 0% )	/	( (0.889	+	0.825)	/ 2 )
=	-0.3	/	0.857
=	-35.01 %

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	))
=	0.153	-	0.363	-	( 0	-	max(0, 1.099	-	0	+	0	))
=	0.889

	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	))
=	0.149	-	0.339	-	( 0	-	max(0, 1.015	-	0	+	0	))
=	0.825

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

Treasure & Shipwreck Recovery (OTCPK:BLIS) 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, Treasure & Shipwreck Recovery's WACC % is 36.48%. Treasure & Shipwreck Recovery's ROIC % is -74.38% (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.

Treasure & Shipwreck Recovery ROIC % Related Terms

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Treasure & Shipwreck Recovery (Treasure & Shipwreck Recovery) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Treasure & Shipwreck Recovery Inc (OTCPK:BLIS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

13046 Racetrack Road, Suite 234, Tampa, FL, USA, 33626

Website

https://www.treasurewreck.com

Treasure & Shipwreck Recovery Inc is engaged in the business of exploration and recovery of historic shipwrecks. The company owns a research vessel and specialized sensing equipment which is used to locate and recover artifacts and treasures from historic shipwrecks, generally from the colonial era. It is also developing gaming app based on treasure search and salvage.