Hoshi Resource (TSXV:HRC.P) ROC % : 0.00% (As of Mar. 2024)

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What is Hoshi Resource 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 %. Hoshi Resource's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 0.00%.

As of today (2024-06-05), Hoshi Resource's WACC % is 9.70%. Hoshi Resource's ROC % is 0.00% (calculated using TTM income statement data). Hoshi Resource earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hoshi Resource ROC % Historical Data

The historical data trend for Hoshi Resource'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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Hoshi Resource ROC % Chart

Hoshi Resource Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

Hoshi Resource Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
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Hoshi Resource ROC % Calculation

Hoshi Resource's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.019 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.019	/	0
=	%

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	))
=	0.34	-	0.009	-	( 0.34	-	max(0, 0.009	-	0.34	+	0.34	))
=	0

	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	))
=	0.322	-	0.009	-	( 0.322	-	max(0, 0.009	-	0.322	+	0.322	))
=	0

Hoshi Resource's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-0.036 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.036	/	0
=	%

where

	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	))
=	0.322	-	0.009	-	( 0.322	-	max(0, 0.009	-	0.322	+	0.322	))
=	0

	Invested Capital		(Q: Mar. 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	))
=	0.319	-	0.015	-	( 0.319	-	max(0, 0.015	-	0.319	+	0.319	))
=	0

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

Hoshi Resource (TSXV:HRC.P) 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, Hoshi Resource's WACC % is 9.70%. Hoshi Resource's ROC % is 0.00% (calculated using TTM income statement data). Hoshi Resource 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.

Hoshi Resource ROC % Related Terms

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Hoshi Resource (TSXV:HRC.P) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Hoshi Resource Corp (TSXV:HRC.P) » Definitions » ROC %

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Address

900, 903 - 8th Avenue SW, Calgary, AB, CAN, T2P 0P7

Website

Hoshi Resource Corp is engaged in identifying and evaluating assets or businesses with a view to potentially acquire them or an interest therein by completing a purchase transaction, by exercising of an option or by any associated transaction.

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