Orvana Minerals (Orvana Minerals) ROC % : -20.04% (As of Dec. 2023)

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What is Orvana Minerals ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Orvana Minerals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -20.04%.

As of today (2024-04-30), Orvana Minerals's WACC % is 5.87%. Orvana Minerals's ROC % is -1.97% (calculated using TTM income statement data). Orvana Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Orvana Minerals ROC % Historical Data

The historical data trend for Orvana Minerals's ROC % 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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Orvana Minerals ROC % Chart

Orvana Minerals Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

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-3.76

-0.66

0.83

-10.58

2.75

Orvana Minerals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															0.16	-2.43	-0.26	10.75	-20.04

Orvana Minerals ROC % Calculation

Orvana Minerals's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	2.371 * ( 1 - -26.42% )	/	( (111.153	+	106.821)	/ 2 )
=	2.9974182	/	108.987
=	2.75 %

where

	Invested Capital		(A: Sep. 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	))
=	128.784	-	30.035	-	( 6.544	-	max(0, 41.079	-	28.675	+	6.544	))
=	111.153

	Invested Capital		(A: 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	))
=	123.249	-	28.7	-	( 8.329	-	max(0, 38.43	-	26.158	+	8.329	))
=	106.821

Orvana Minerals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-13.672 * ( 1 - -55.38% )	/	( (106.821	+	105.162)	/ 2 )
=	-21.2435536	/	105.9915
=	-20.04 %

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	))
=	123.249	-	28.7	-	( 8.329	-	max(0, 38.43	-	26.158	+	8.329	))
=	106.821

	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	))
=	113.635	-	25.275	-	( 3.859	-	max(0, 36.364	-	19.562	+	3.859	))
=	105.162

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

Orvana Minerals (OTCPK:ORVMF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Orvana Minerals's WACC % is 5.87%. Orvana Minerals's ROC % is -1.97% (calculated using TTM income statement data). Orvana Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Orvana Minerals ROC % Related Terms

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Orvana Minerals (Orvana Minerals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Orvana Minerals Corp (OTCPK:ORVMF) » Definitions » ROC %

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O6M:Germany ORV:Canada

Address

70 York Street, Suite 1710, Toronto, ON, CAN, M5J 1S9

Website

https://www.orvana.com

Orvana Minerals Corp is a Canadian mining and exploration company that is involved in the evaluation, development, and mining of precious and base metal deposits. The company predominantly operates in the gold and copper mining industry and its majority of the products are gold dore and gold/copper concentrates. Its properties include El Valle and Carles mines and the El Valle processing plant (collectively, El Valle), producer of copper concentrate and dore, Don Mario Operation and Taguas Property. The company's segments include Orovalle, which operates El Valle Mine in Spain, EMIPA which operates Don Mario Mine in Bolivia, Orvana Argentina and Corporate. Majority of the revenue for the company is generated from its Orovalle segment.