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Galway Metals ROC %

: -149.21% (As of Jun. 2021)
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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Galway Metals's annualized return on capital (ROC %) for the quarter that ended in Jun. 2021 was -149.21%.

As of today (2021-12-04), Galway Metals's WACC % is 11.74%. Galway Metals's ROC % is -157.14% (calculated using TTM income statement data). Galway Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Galway Metals ROC % Historical Data

The historical data trend for Galway 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.

* Premium members only.

Galway Metals Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only -163.83 -178.42 -122.57 -110.57 -142.91

Galway Metals Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
ROC % 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 Premium Member Only Premium Member Only Premium Member Only -86.32 -98.39 -216.73 -169.72 -149.21

Galway Metals ROC % Calculation

Galway Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

ROC % (A: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 ))/ count )
=-9.7041142946366 * ( 1 - 0% )/( (4.8606576049814 + 8.7204309469904)/ 2 )
=-9.7041142946366/6.7905442759859
=-142.91 %

where

Invested Capital(A: Dec. 2019 )
=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))
=9.6385450679626 - 0.49889892930367 - ( 4.6533525704306 - max(0, 0.95071759435037 - 5.2297061280279+4.6533525704306))
=4.8606576049814

Invested Capital(A: Dec. 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))
=19.311421656648 - 0.66906081661332 - ( 11.984542118823 - max(0, 3.3905847451011 - 13.312514638145+11.984542118823))
=8.7204309469904

Galway Metals's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2021 is calculated as:

ROC % (Q: Jun. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2021 ) + Invested Capital (Q: Jun. 2021 ))/ count )
=-16.350245499182 * ( 1 - 0% )/( (10.447131832286 + 11.468085106383)/ 2 )
=-16.350245499182/10.957608469334
=-149.21 %

where

Invested Capital(Q: Mar. 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))
=27.525658365821 - 1.0812316015594 - ( 20.297557482696 - max(0, 5.4069536160395 - 21.404248548015+20.297557482696))
=10.447131832286

Invested Capital(Q: Jun. 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))
=24.551554828151 - 0.88297872340426 - ( 16.769230769231 - max(0, 5.3887070376432 - 17.589198036007+16.769230769231))
=11.468085106383

Note: The Operating Income data used here is four times the quarterly (Jun. 2021) 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.


Galway Metals  (OTCPK:GAYMF) 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, Galway Metals's WACC % is 11.74%. Galway Metals's ROC % is -157.14% (calculated using TTM income statement data). Galway 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.


Galway Metals ROC % Related Terms

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Galway Metals Business Description

Galway Metals logo
Industry
Basic Materials » Metals & Mining NAICS : 212221 SIC : 611
Traded in Other Exchanges
Address
82 Richmond Street East, Suite 200, Toronto, ON, CAN, M5C 1P1
Galway Metals Inc is an exploration-stage company. It is in the process of exploring for, and delineating resources at the Clarence Stream and Estrades gold projects, located in Canada's jurisdictions of New Brunswick and Quebec, respectively. The company's only operating segment is the acquisition, exploration, and development of mineral resource properties. It explores for gold at Clarence Stream and gold, silver, zinc, copper, and lead at Estrades.
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