Marvel Gold (ASX:MVL) ROC % : -17.62% (As of Jun. 2024)

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What is Marvel Gold 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 %. Marvel Gold's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -17.62%.

As of today (2024-12-14), Marvel Gold's WACC % is 7.62%. Marvel Gold's ROC % is -73.79% (calculated using TTM income statement data). Marvel Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Marvel Gold ROC % Historical Data

The historical data trend for Marvel Gold'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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Marvel Gold ROC % Chart

Marvel Gold Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Dec22

Dec23

ROC %

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-147.42

-67.03

-161.30

-164.11

-56.51

Marvel Gold Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial												-100.57	-22.82	-27.72	-109.81	-17.62

Marvel Gold ROC % Calculation

Marvel Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-4.616 * ( 1 - 0% )	/	( (10.787	+	5.55)	/ 2 )
=	-4.616	/	8.1685
=	-56.51 %

where

	Invested Capital		(A: Dec. 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	))
=	12.097	-	0.208	-	( 1.181	-	max(0, 0.272	-	1.374	+	1.181	))
=	10.787

	Invested Capital		(A: 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	))
=	6.982	-	0.112	-	( 1.337	-	max(0, 0.113	-	1.433	+	1.337	))
=	5.55

Marvel Gold's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-0.75 * ( 1 - 0% )	/	( (5.55	+	2.961)	/ 2 )
=	-0.75	/	4.2555
=	-17.62 %

where

	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	))
=	6.982	-	0.112	-	( 1.337	-	max(0, 0.113	-	1.433	+	1.337	))
=	5.55

	Invested Capital		(Q: 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	))
=	3.872	-	0.061	-	( 0.904	-	max(0, 0.061	-	0.911	+	0.904	))
=	2.961

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Marvel Gold (ASX:MVL) 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, Marvel Gold's WACC % is 7.62%. Marvel Gold's ROC % is -73.79% (calculated using TTM income statement data). Marvel Gold 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.

Marvel Gold ROC % Related Terms

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Marvel Gold Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Marvel Gold Ltd (ASX:MVL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

GRXMF:USA GR2:Germany

Address

130 Hay Street, Level One, Perth, WA, AUS, 6005

Website

https://www.marvelgold.com.au

Marvel Gold Ltd is a Mali-focused gold explorer company with advanced gold exploration projects and extensive landholdings in South and West Mali. The project portfolio of the group includes Tabakorole Gold project, Yanfolila Gold project, and Kolondieba Gold project.

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