Genesis Resources (ASX:GES) ROC % : -3.40% (As of Dec. 2023)

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What is Genesis 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 %. Genesis Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -3.40%.

As of today (2024-12-11), Genesis Resources's WACC % is 7.64%. Genesis Resources's ROC % is -3.06% (calculated using TTM income statement data). Genesis Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Genesis Resources ROC % Historical Data

The historical data trend for Genesis 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.

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Genesis Resources ROC % Chart

Genesis Resources Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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-4.86

-5.15

-3.52

-3.29

-3.06

Genesis Resources Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															-3.33	-2.83	-3.78	-3.40	-2.72

Genesis Resources ROC % Calculation

Genesis Resources'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 )
=	-1.069 * ( 1 - 0% )	/	( (31.401	+	33.55)	/ 2 )
=	-1.069	/	32.4755
=	-3.29 %

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	))
=	21.824	-	3.389	-	( 0.194	-	max(0, 13.179	-	0.213	+	0.194	))
=	31.401

	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	))
=	22.662	-	4.378	-	( 0.377	-	max(0, 15.766	-	0.5	+	0.377	))
=	33.55

Genesis 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 )
=	-1.166 * ( 1 - 0% )	/	( (33.55	+	35.05)	/ 2 )
=	-1.166	/	34.3
=	-3.40 %

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	))
=	22.662	-	4.378	-	( 0.377	-	max(0, 15.766	-	0.5	+	0.377	))
=	33.55

	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	))
=	22.893	-	4.763	-	( 0.057	-	max(0, 17.111	-	0.191	+	0.057	))
=	35.05

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

Genesis Resources (ASX:GES) 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, Genesis Resources's WACC % is 7.64%. Genesis Resources's ROC % is -3.06% (calculated using TTM income statement data). Genesis 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.

Genesis Resources ROC % Related Terms

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Genesis Resources Business Description

Industry

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Address

525 Collins Street, Level 23, Rialto South Tower, Melbourne, VIC, AUS, 3000

Website

https://www.genesisresourcesltd.com.au

Genesis Resources Ltd is engaged in mining and exploration. It is engaged in the exploration for and evaluation of gold, manganese, and base metals. The projects of the company include the Alice Springs Cu-Au and Arltunga Au projects, the Plavica, Pioneer, and the McArthur River projects. Its reportable segments are; Australia, Macedonia, and the Head office. The Australia segment includes its copper, iron, gold, manganese, and other base metal exploration projects in the Northern Territory and Queensland. The Macedonia segment includes a base metal and gold exploration project, and the Head Office segment represents the central administration of Australia and Macedonia.