US Critical Metals (XCNQ:USCM) ROC % : 0.00% (As of Mar. 2024)

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

As of today (2024-05-24), US Critical Metals's WACC % is 9.70%. US Critical Metals's ROC % is -2819.81% (calculated using TTM income statement data). US Critical Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

US Critical Metals ROC % Historical Data

The historical data trend for US Critical Metals'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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US Critical Metals ROC % Chart

US Critical Metals Annual Data

Trend

Jan22

Sep23

ROC %

US Critical Metals Quarterly Data
	Mar21	Dec21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial					-3,619.17	-7,920.00	-	-	-

US Critical Metals ROC % Calculation

US Critical Metals'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: Jan. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-5.815 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-5.815	/	0
=	%

where

	Invested Capital		(A: Jan. 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	))
=	0.032	-	0.205	-	( 0.012	-	max(0, 0.205	-	0.032	+	0.012	))
=	0

	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	))
=	1.615	-	0.593	-	( 1.444	-	max(0, 0.593	-	1.615	+	1.444	))
=	0

US Critical Metals'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 )
=	-0.82 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.82	/	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	))
=	0.674	-	0.399	-	( 0.559	-	max(0, 0.399	-	0.674	+	0.559	))
=	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	))
=	0.444	-	0.449	-	( 0.346	-	max(0, 0.449	-	0.444	+	0.346	))
=	0

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

US Critical Metals (XCNQ:USCM) 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, US Critical Metals's WACC % is 9.70%. US Critical Metals's ROC % is -2819.81% (calculated using TTM income statement data). US Critical Metals 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.

US Critical Metals ROC % Related Terms

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US Critical Metals (XCNQ:USCM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » US Critical Metals Corp (XCNQ:USCM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

USCMF:USA 0IU0:Germany

Address

550 Burrard Street, Suite 2300, Vancouver, BC, CAN, V6C 2B5

Website

https://www.uscmcorp.com

US Critical Metals Corp is engaged in the business of mineral exploration. Its exploration projects include the Haynes Cobalt Property and the Nevada Lithium Property.

Executives

Darren George Collins

Director, Senior Officer

US Critical Metals (XCNQ:USCM) Headlines

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