Miramar Resources (ASX:M2R) ROC % : -29.91% (As of Dec. 2023)

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What is Miramar 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 %. Miramar Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -29.91%.

As of today (2024-12-13), Miramar Resources's WACC % is 15.36%. Miramar Resources's ROC % is -21.91% (calculated using TTM income statement data). Miramar Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Miramar Resources ROC % Historical Data

The historical data trend for Miramar 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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Miramar Resources ROC % Chart

Miramar Resources Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

ROC %

-31.90

-27.85

-18.89

-21.86

Miramar Resources Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-29.26	-17.69	-17.62	-29.91	-14.20

Miramar Resources ROC % Calculation

Miramar 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 )
=	-1.901 * ( 1 - 0% )	/	( (8.44	+	8.951)	/ 2 )
=	-1.901	/	8.6955
=	-21.86 %

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	))
=	9.098	-	0.223	-	( 0.435	-	max(0, 0.296	-	0.758	+	0.435	))
=	8.44

	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	))
=	9.36	-	0.332	-	( 0.414	-	max(0, 0.395	-	0.472	+	0.414	))
=	8.951

Miramar 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 )
=	-2.552 * ( 1 - 0% )	/	( (8.44	+	8.625)	/ 2 )
=	-2.552	/	8.5325
=	-29.91 %

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	))
=	9.098	-	0.223	-	( 0.435	-	max(0, 0.296	-	0.758	+	0.435	))
=	8.44

	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	))
=	9.372	-	0.201	-	( 0.546	-	max(0, 0.252	-	0.858	+	0.546	))
=	8.625

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

Miramar Resources (ASX:M2R) 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, Miramar Resources's WACC % is 15.36%. Miramar Resources's ROC % is -21.91% (calculated using TTM income statement data). Miramar 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.

Miramar Resources ROC % Related Terms

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Miramar Resources Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Miramar Resources Ltd (ASX:M2R) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Unit 1, 22 Hardy Street, Perth, WA, AUS, 6151

Website

https://www.miramarresources.com.au

Miramar Resources Ltd is a mineral exploration company. The company's projects are divided into two projects areas namely, the Eastern Goldfields and Gascoyne regions of Western Australia. Its project comprises of Gidji JV Project, Glandore Project, Randall's project, Whaleshark project, Bangemall Ni-Cu-PGE project and Chain project.

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