Sandfire Resources America (Sandfire Resources America) ROC % : -27.85% (As of Mar. 2024)

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What is Sandfire Resources America 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 %. Sandfire Resources America's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -27.85%.

As of today (2024-04-28), Sandfire Resources America's WACC % is 9.38%. Sandfire Resources America's ROC % is -20.98% (calculated using TTM income statement data). Sandfire Resources America earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sandfire Resources America ROC % Historical Data

The historical data trend for Sandfire Resources America'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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Sandfire Resources America ROC % Chart

Sandfire Resources America Annual Data

Trend

Sep14

Sep15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-188.65

-89.35

-66.06

-68.71

-25.66

Sandfire Resources America Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-13.36	-27.67	-15.36	-13.75	-27.85

Sandfire Resources America ROC % Calculation

Sandfire Resources America's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-8.005 * ( 1 - 0% )	/	( (26.575	+	35.814)	/ 2 )
=	-8.005	/	31.1945
=	-25.66 %

where

	Invested Capital		(A: Jun. 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	))
=	16.095	-	1.445	-	( 0.074	-	max(0, 12.405	-	0.48	+	0.074	))
=	26.575

	Invested Capital		(A: Jun. 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	))
=	17.013	-	1.667	-	( 0.09	-	max(0, 21.026	-	0.558	+	0.09	))
=	35.814

Sandfire Resources America'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 )
=	-12.108 * ( 1 - 0% )	/	( (40.793	+	46.168)	/ 2 )
=	-12.108	/	43.4805
=	-27.85 %

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	))
=	17.787	-	1.825	-	( 0.603	-	max(0, 25.893	-	1.062	+	0.603	))
=	40.793

	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	))
=	18.787	-	2.443	-	( 0.835	-	max(0, 30.84	-	1.016	+	0.835	))
=	46.168

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

Sandfire Resources America (OTCPK:SRAFF) 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, Sandfire Resources America's WACC % is 9.38%. Sandfire Resources America's ROC % is -20.98% (calculated using TTM income statement data). Sandfire Resources America 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.

Sandfire Resources America ROC % Related Terms

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Sandfire Resources America (Sandfire Resources America) Business Description

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SFR:Canada

Address

595 Howe Street, 10th Floor, Vancouver, BC, CAN, V6C 2T5

Website

https://www.sandfireamerica.com

Sandfire Resources America Inc is engaged in the exploration, development, and mining of its 100% owned flagship property, the Black Butte Copper Project in central Montana, USA. The property contains sediment-hosted zones of massive sulfide mineralization. The drilling encountered significant zones of strata-bound copper sulfide with cobalt in multiple bedded pyrite zones in the lower part of the Precambrian Belt Super group. The Company's operations are limited to a single industry segment being the acquisition, exploration, and development of resource properties.