Vanadian Energy (Vanadian Energy) ROC %

: -66.80% (As of Jan. 2024)

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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 %. Vanadian Energy's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -66.80%.

As of today (2024-04-18), Vanadian Energy's WACC % is -0.93%. Vanadian Energy's ROC % is -27.78% (calculated using TTM income statement data). Vanadian Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vanadian Energy ROC % Historical Data

The historical data trend for Vanadian Energy'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.

Vanadian Energy Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROC %

-34.11

-26.67

-19.99

-18.30

-25.83

Vanadian Energy Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %																-25.24	-14.95	-19.39	-43.11	-66.80

Vanadian Energy ROC % Calculation

Vanadian Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2023 is calculated as:

	ROC % (A: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2022 )	+	Invested Capital (A: Jul. 2023 ))	/ count )
=	-0.124 * ( 1 - 0% )	/	( (0.714	+	0.246)	/ 2 )
=	-0.124	/	0.48
=	-25.83 %

where

	Invested Capital		(A: Jul. 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	))
=	0.502	-	0.786	-	( 0.015	-	max(0, 1.018	-	0.02	+	0.015	))
=	0.714

	Invested Capital		(A: Jul. 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	))
=	0.004	-	0.873	-	( 0.002	-	max(0, 1.119	-	0.004	+	0.002	))
=	0.246

Vanadian Energy's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-0.172 * ( 1 - 0% )	/	( (0.255	+	0.26)	/ 2 )
=	-0.172	/	0.2575
=	-66.80 %

where

	Invested Capital		(Q: Oct. 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	))
=	0.018	-	0.867	-	( 0.016	-	max(0, 1.122	-	0.018	+	0.016	))
=	0.255

	Invested Capital		(Q: Jan. 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	))
=	0.015	-	0.93	-	( 0.013	-	max(0, 1.19	-	0.015	+	0.013	))
=	0.26

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

Vanadian Energy (OTCPK:URCFF) 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, Vanadian Energy's WACC % is -0.93%. Vanadian Energy's ROC % is -27.78% (calculated using TTM income statement data). Vanadian Energy 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.

Vanadian Energy ROC % Related Terms

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Vanadian Energy (Vanadian Energy) Business Description

Industry

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VEC.H:Canada

Address

595 Burrard Street, Suite 3123, Vancouver, BC, CAN, V7X 1J1

Website

https://www.vanadianenergy.com

Vanadian Energy Corp is a Canadian-based exploration company focused on exploring vanadium deposits in Manitoba. It is exploring its Saskatchewan property which is the Clearwater Project. the company holds three claim blocks in the Pipewrench Lake and Narrows Lake areas in Saskatchewan. it holds an interest in Huzyk Creek Vanadium Property and Quebec properties.

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