Tarku Resources (Tarku Resources) ROC % : -30.74% (As of Dec. 2023)

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What is Tarku Resources 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 %. Tarku Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -30.74%.

As of today (2024-05-24), Tarku Resources's WACC % is -0.09%. Tarku Resources's ROC % is -31.79% (calculated using TTM income statement data). Tarku Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tarku Resources ROC % Historical Data

The historical data trend for Tarku Resources'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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Tarku Resources ROC % Chart

Tarku Resources Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

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-91.11

-98.27

-240.47

-55.37

-45.66

Tarku Resources 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															-86.47	-71.87	-7.49	-17.37	-30.74

Tarku Resources ROC % Calculation

Tarku Resources'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 )
=	-1.204 * ( 1 - 0% )	/	( (2.553	+	2.721)	/ 2 )
=	-1.204	/	2.637
=	-45.66 %

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	))
=	2.764	-	0.222	-	( 0.401	-	max(0, 0.45	-	0.439	+	0.401	))
=	2.553

	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	))
=	2.782	-	0.411	-	( 0.03	-	max(0, 0.411	-	0.061	+	0.03	))
=	2.721

Tarku Resources'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 )
=	-0.84 * ( 1 - 0% )	/	( (2.721	+	2.744)	/ 2 )
=	-0.84	/	2.7325
=	-30.74 %

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	))
=	2.782	-	0.411	-	( 0.03	-	max(0, 0.411	-	0.061	+	0.03	))
=	2.721

	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	))
=	3.039	-	0.595	-	( 0.262	-	max(0, 0.595	-	0.295	+	0.262	))
=	2.744

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

Tarku Resources (OTCPK:TRKUF) 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, Tarku Resources's WACC % is -0.09%. Tarku Resources's ROC % is -31.79% (calculated using TTM income statement data). Tarku Resources 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.

Tarku Resources ROC % Related Terms

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Tarku Resources (Tarku Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Tarku Resources Ltd (OTCPK:TRKUF) » Definitions » ROC %

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7TK:Germany TKU:Canada

Address

4th Avenue Street, Suite 602 - 224, Saskatoon, SK, CAN, S7K 5M5

Website

https://www.tarkuresources.com

Tarku Resources Ltd is a mineral exploration company. It is engaged in the acquisition, exploration, and development of precious and base metals in the mineral-rich Canadian landscape. It explores uranium, gold, silver, copper, zinc, and diamonds. It holds an interest in the Apollo gold project, Max Lithium Project, Admiral gold project, Atlas gold project in Quebec, and silver strike project in Arizona. The company operates in two geographical segments Arizona and Quebec, out of which it makes majority of revenue from Arizona.