C29 Metals (ASX:C29) ROC % : -106.30% (As of Dec. 2023)

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What is C29 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 %. C29 Metals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -106.30%.

As of today (2024-12-11), C29 Metals's WACC % is 14.04%. C29 Metals's ROC % is -88.80% (calculated using TTM income statement data). C29 Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

C29 Metals ROC % Historical Data

The historical data trend for C29 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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C29 Metals ROC % Chart

C29 Metals Annual Data

Trend

Jun22

Jun23

Jun24

ROC %

-43.93

-91.41

-77.37

C29 Metals Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-38.49	-68.13	-92.29	-106.30	-87.83

C29 Metals ROC % Calculation

C29 Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-3.414 * ( 1 - 0% )	/	( (3.496	+	5.329)	/ 2 )
=	-3.414	/	4.4125
=	-77.37 %

where

	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	))
=	4.869	-	0.405	-	( 1.306	-	max(0, 0.405	-	1.373	+	1.306	))
=	3.496

	Invested Capital		(A: Jun. 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	))
=	7.673	-	0.212	-	( 2.228	-	max(0, 0.234	-	2.366	+	2.228	))
=	5.329

C29 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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-3.298 * ( 1 - 0% )	/	( (3.496	+	2.709)	/ 2 )
=	-3.298	/	3.1025
=	-106.30 %

where

	Invested Capital		(Q: 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	))
=	4.869	-	0.405	-	( 1.306	-	max(0, 0.405	-	1.373	+	1.306	))
=	3.496

	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	))
=	3.737	-	0.337	-	( 0.953	-	max(0, 0.337	-	1.028	+	0.953	))
=	2.709

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

C29 Metals (ASX:C29) 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, C29 Metals's WACC % is 14.04%. C29 Metals's ROC % is -88.80% (calculated using TTM income statement data). C29 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.

C29 Metals ROC % Related Terms

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C29 Metals Business Description

Industry

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Traded in Other Exchanges

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Address

4 Douro Place, Suite 4, West Perth, WA, AUS, 6005

Website

https://www.c29metals.com.au

C29 Metals Ltd is a minerals exploration company, engaged in identifying, exploring and developing prospective copper, gold and base metal assets throughout Australia. The company's projects include Sampson Tank, Reedy Creek Project, Torrens Projects, and Stadlers Project. It is organised into two operating segments, being the exploration of minerals in Australia and exploration of minerals in Kazakhstan.

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