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Great Boulder Resources (ASX:GBR) ROC % : -11.06% (As of Dec. 2023)


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What is Great Boulder Resources 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 %. Great Boulder Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -11.06%.

As of today (2024-12-14), Great Boulder Resources's WACC % is 5.66%. Great Boulder Resources's ROC % is -26.51% (calculated using TTM income statement data). Great Boulder Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Great Boulder Resources ROC % Historical Data

The historical data trend for Great Boulder Resources'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.

Great Boulder Resources ROC % Chart

Great Boulder Resources Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
Get a 7-Day Free Trial -41.02 -10.43 -24.37 -16.83 -29.04

Great Boulder Resources Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -19.05 -16.46 -16.62 -11.06 -41.86

Great Boulder Resources ROC % Calculation

Great Boulder Resources'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 )
=-6.514 * ( 1 - 0% )/( (25.945 + 18.915)/ 2 )
=-6.514/22.43
=-29.04 %

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))
=31.284 - 1.196 - ( 4.937 - max(0, 1.391 - 5.534+4.937))
=25.945

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))
=22.414 - 0.622 - ( 2.928 - max(0, 0.85 - 3.727+2.928))
=18.915

Great Boulder Resources'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 )
=-3.03 * ( 1 - 0% )/( (25.945 + 28.844)/ 2 )
=-3.03/27.3945
=-11.06 %

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))
=31.284 - 1.196 - ( 4.937 - max(0, 1.391 - 5.534+4.937))
=25.945

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))
=33.956 - 0.508 - ( 5.043 - max(0, 0.728 - 5.332+5.043))
=28.844

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

Great Boulder Resources  (ASX:GBR) 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, Great Boulder Resources's WACC % is 5.66%. Great Boulder Resources's ROC % is -26.51% (calculated using TTM income statement data). Great Boulder Resources 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.

Great Boulder Resources ROC % Related Terms

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Great Boulder Resources Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Great Boulder Resources Ltd (ASX:GBR) » Definitions » ROC %
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Traded in Other Exchanges
N/A
Address
Level 1, 51 Colin Street, West Perth, Perth, WA, AUS, 6005
Website
https://www.greatboulder.com.au
Great Boulder Resources Ltd is a new mineral exploration company, with a primary focus on exploration, discovery and delineation of nickel-copper-cobalt and gold resources within the Eastern Goldfields Region of Western Australia. It holds interest in various projects such as Sidewall, Wellington and Whiteheads. The company operates as a single segment which is Mineral Exploration and in a single geographical location which is Australia.