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Industrial Minerals (ASX:IND) ROC % : -59.41% (As of Dec. 2023)


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What is Industrial Minerals 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 %. Industrial Minerals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -59.41%.

As of today (2025-03-16), Industrial Minerals's WACC % is -7.97%. Industrial Minerals's ROC % is -65.11% (calculated using TTM income statement data). Industrial Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Industrial Minerals ROC % Historical Data

The historical data trend for Industrial Minerals'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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Industrial Minerals ROC % Chart

Industrial Minerals Annual Data
Trend Jun21 Jun22 Jun23 Jun24
ROC %
-2,544.44 -278.07 -107.10 -68.53

Industrial Minerals Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial -233.00 -189.33 -53.45 -59.41 -67.00

Industrial Minerals ROC % Calculation

Industrial Minerals'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 )
=-1.681 * ( 1 - 0% )/( (2.031 + 2.875)/ 2 )
=-1.681/2.453
=-68.53 %

where

Industrial Minerals'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 )
=-1.448 * ( 1 - 0% )/( (2.031 + 2.844)/ 2 )
=-1.448/2.4375
=-59.41 %

where

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.


Industrial Minerals  (ASX:IND) 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, Industrial Minerals's WACC % is -7.97%. Industrial Minerals's ROC % is -65.11% (calculated using TTM income statement data). Industrial Minerals 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.


Industrial Minerals ROC % Related Terms

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Industrial Minerals Business Description

Traded in Other Exchanges
N/A
Address
460 Stirling Highway, Peppermint Grove, Unit 20, Perth, WA, AUS, 6011
Industrial Minerals Ltd is a company engaged in exploring and developing industrial minerals. Its projects include the Stockyard High Purity Silica Sand (HPSS) Project: The project is targeting high purity silica sand across predominantly cleared private land with no native title implications and has an Indicated and Inferred Mineral. Albany HPSS Project: The Albany HPSS Project is located in southwestern Western Australia. Pippingarra Quarry Project: The Pippingarra Project is prospective for High Purity Quartz (HPQ) and lithium and is located near some of the hardest rock lithium mines. Mukinbudin Quartz-Feldspar Project: Mukinbudin consists of a microcline feldspar deposit within a simple, zoned, feldspar-muscovite-quartz pegmatite, similar to IND's Pippingarra Quarry Project.

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