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Star Gold (Star Gold) ROC % : -19.49% (As of Jan. 2024)


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What is Star Gold 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 %. Star Gold's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -19.49%.

As of today (2024-05-25), Star Gold's WACC % is 2.35%. Star Gold's ROC % is -45.74% (calculated using TTM income statement data). Star Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Star Gold ROC % Historical Data

The historical data trend for Star Gold'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.

* Premium members only.

Star Gold ROC % Chart

Star Gold Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -71.17 -74.61 -93.93 -55.61 -56.44

Star Gold Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -29.28 -92.16 -46.92 -27.34 -19.49

Star Gold ROC % Calculation

Star Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2023 is calculated as:

ROC % (A: Apr. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2022 ) + Invested Capital (A: Apr. 2023 ))/ count )
=-0.401 * ( 1 - 0% )/( (0.754 + 0.667)/ 2 )
=-0.401/0.7105
=-56.44 %

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))
=0.846 - 0.041 - ( 0.051 - max(0, 0.041 - 0.19+0.051))
=0.754

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))
=0.712 - 0.054 - ( 0.034 - max(0, 0.054 - 0.045+0.034))
=0.667

Star Gold's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=-0.144 * ( 1 - 0% )/( (0.749 + 0.729)/ 2 )
=-0.144/0.739
=-19.49 %

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))
=0.752 - 0.085 - ( 0.071 - max(0, 0.155 - 0.073+0.071))
=0.749

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))
=0.691 - 0.092 - ( 0.011 - max(0, 0.142 - 0.012+0.011))
=0.729

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

* 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.

Star Gold  (OTCPK:SRGZ) 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, Star Gold's WACC % is 2.35%. Star Gold's ROC % is -45.74% (calculated using TTM income statement data). Star Gold 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.

Star Gold ROC % Related Terms

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Star Gold (Star Gold) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Star Gold Corp (OTCPK:SRGZ) » Definitions » ROC %
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Traded in Other Exchanges
N/A
Address
1875 N. Lakeview Drive, Suite 200, Coeur d’Alene, ID, USA, 83814
Website
https://www.stargoldcorp.com
Star Gold Corp is an exploration stage company. The company is engaged in the acquisition and exploration of precious metal deposit properties with the potential for economic deposits of precious and base metals. It includes the Longstreet property located in the state of Nevada.
Executives
Kelly Stopher director, officer: CFO 611 E. SHERMAN AVE., COEUR D'ALENE ID 83814
Lindsay Edward Gorrill director, 10 percent owner, officer: CEO,, CFO 611 E. SHERMAN AVE., COEUR D'ALENE ID 83814
David Segelov director 611 E. SHERMAN AVE., COEUR D'ALENE ID 83814
Thomas Power director 611 E. SHERMAN AVENUE, COEUR D'ALENE ID 83814
Paul B Coombs director 611 E. SHERMAN AVE., COUR D'ALENE ID 83814
Ron Nilson director 611 E. SHERMAN AVE., COEUR D'ALENE ID 83814
Ian Falconer director 611 E. SHERMAN AVE., COEUR D'ALENE ID 83814