International Battery Metals (International Battery Metals) ROC % : -36.19% (As of Dec. 2023)

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What is International Battery 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 %. International Battery Metals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -36.19%.

As of today (2024-05-16), International Battery Metals's WACC % is 10.40%. International Battery Metals's ROC % is -26.25% (calculated using TTM income statement data). International Battery Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

International Battery Metals ROC % Historical Data

The historical data trend for International Battery 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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International Battery Metals ROC % Chart

International Battery Metals Annual Data

Trend

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

ROC %

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-7,800.00

-643.52

-148.55

-38.07

-64.75

International Battery Metals Quarterly Data
	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-26.09	-42.23	-44.40	-26.42	-36.19

International Battery Metals ROC % Calculation

International Battery Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2021 is calculated as:

	ROC % (A: Jan. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2020 )	+	Invested Capital (A: Jan. 2021 ))	/ count )
=	-5.117 * ( 1 - 0% )	/	( (5.227	+	10.579)	/ 2 )
=	-5.117	/	7.903
=	-64.75 %

where

	Invested Capital		(A: Jan. 2020 )
=	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	))
=	4.701	-	0.489	-	( 0.3	-	max(0, 1.325	-	0.31	+	0.3	))
=	5.227

	Invested Capital		(A: Jan. 2021 )
=	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	))
=	7.503	-	0.464	-	( 0.167	-	max(0, 3.795	-	0.255	+	0.167	))
=	10.579

International Battery Metals'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 )
=	-11.256 * ( 1 - 0% )	/	( (30.715	+	31.49)	/ 2 )
=	-11.256	/	31.1025
=	-36.19 %

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	))
=	32.615	-	2.204	-	( 1.185	-	max(0, 2.302	-	1.998	+	1.185	))
=	30.715

	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	))
=	33.494	-	2.516	-	( 1.589	-	max(0, 2.606	-	2.094	+	1.589	))
=	31.49

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

International Battery Metals (OTCPK:IBATF) 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, International Battery Metals's WACC % is 10.40%. International Battery Metals's ROC % is -26.25% (calculated using TTM income statement data). International Battery 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.

International Battery Metals ROC % Related Terms

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International Battery Metals (International Battery Metals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » International Battery Metals Ltd (OTCPK:IBATF) » Definitions » ROC %

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8RE:Germany IBAT:Canada

Address

1055 West Georgia Street, Suite 1750, Royal Centre, Vancouver, BC, CAN, V6E 3P3

Website

https://www.ibatterymetals.com

International Battery Metals Ltd is a technology company focused on lithium extraction from salars, geothermal brines and oil field brines. The company is in the process of creating and applying intellectual property related to lithium extraction from brines. Its extraction process is environmentally friendly, low cost, and has the potential to produce commercial-grade lithium at a faster rate.