King Global Ventures (TSXV:KING) ROIC % : -473.82% (As of Dec. 2023)

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What is King Global Ventures 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 %. King Global Ventures's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -473.82%.

As of today (2024-05-15), King Global Ventures's WACC % is 18.86%. King Global Ventures's ROIC % is -253.56% (calculated using TTM income statement data). King Global Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

King Global Ventures ROIC % Historical Data

The historical data trend for King Global Ventures'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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King Global Ventures ROIC % Chart

King Global Ventures Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-2.26

-18.49

-62.57

-27.67

-331.90

King Global Ventures Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-6.55	-102.48	-197.26	-316.33	-473.82

Competitive Comparison of King Global Ventures's ROIC %

For the Gold subindustry, King Global Ventures'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.

King Global Ventures's ROIC % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, King Global Ventures's ROIC % distribution charts can be found below:

* The bar in red indicates where King Global Ventures's ROIC % falls into.

King Global Ventures ROIC % Calculation

King Global Ventures's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.463 * ( 1 - 0% )	/	( (0.242	+	0.037)	/ 2 )
=	-0.463	/	0.1395
=	-331.90 %

where

	Invested Capital		(A: Dec. 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	))
=	0.44	-	0.792	-	( 0.064	-	max(0, 0.792	-	0.198	+	0.064	))
=	0.242

	Invested Capital		(A: 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	))
=	0.464	-	0.363	-	( 0.415	-	max(0, 0.363	-	0.427	+	0.415	))
=	0.037

King Global Ventures'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 )
=	-0.552 * ( 1 - 0% )	/	( (0.196	+	0.037)	/ 2 )
=	-0.552	/	0.1165
=	-473.82 %

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	))
=	0.744	-	0.323	-	( 0.534	-	max(0, 0.323	-	0.548	+	0.534	))
=	0.196

	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	))
=	0.464	-	0.363	-	( 0.415	-	max(0, 0.363	-	0.427	+	0.415	))
=	0.037

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

King Global Ventures (TSXV:KING) 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, King Global Ventures's WACC % is 18.86%. King Global Ventures's ROIC % is -253.56% (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.

King Global Ventures ROIC % Related Terms

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King Global Ventures (TSXV:KING) Business Description

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KGLDF:USA

Address

82 Richmond Street East, Suite 200, Toronto, ON, CAN, M5C 1P1

Website

https://www.kingtsxv.com

King Global Ventures Incny is a junior prospecting and natural resource company, focused on growing exploration and mineral assets to build shareholder value. The Company's properties are located in Newfoundland and Quebec, Canada and Nicaragua.