OD6 Metals (ASX:OD6) ROC %: -29.43% (As of Dec. 2025)


What is OD6 Metals ROC %?

OD6 Metals ASX:OD6 ROC % is -29.43% as of Dec. 2025. The stock has 1 warning sign investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. OD6 Metals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -29.43%.

As of today (2026-06-26), OD6 Metals's WACC % is -5.95%. OD6 Metals's ROC % is -22.55% (calculated using TTM income statement data). OD6 Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

OD6 Metals  (ASX:OD6) 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, OD6 Metals's WACC % is -5.95%. OD6 Metals's ROC % is -22.55% (calculated using TTM income statement data). OD6 Metals 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.

OD6 Metals ROC % Related Terms

OD6 Metals ROC % Historical Data

* Premium members only.

The historical data trend for OD6 Metals'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.

OD6 Metals ROC % Chart

OD6 Metals Annual Data
Trend Jun22 Jun23 Jun24 Jun25
ROC %
-152.45 -51.18 -26.96 -45.63

OD6 Metals Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROC % Get a 7-Day Free Trial Premium Member Only -37.27 -18.58 -87.90 -14.07 -29.43

OD6 Metals ROC % Calculation

OD6 Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2025 is calculated as:

ROC % (A: Jun. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2024 ) + Invested Capital (A: Jun. 2025 ))/ count )
=-3.28 * ( 1 - 0% )/( (7.263 + 7.113)/ 2 )
=-3.28/7.188
=-45.63 %

where

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))
=9.703 - 0.434 - ( 2.326 - max(0, 0.472 - 2.478+2.326))
=7.263

Invested Capital(A: Jun. 2025 )
=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))
=8.321 - 0.226 - ( 1.089 - max(0, 0.297 - 1.279+1.089))
=7.113

OD6 Metals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-2.338 * ( 1 - 0% )/( (7.113 + 8.773)/ 2 )
=-2.338/7.943
=-29.43 %

where

Invested Capital(Q: Jun. 2025 )
=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))
=8.321 - 0.226 - ( 1.089 - max(0, 0.297 - 1.279+1.089))
=7.113

Invested Capital(Q: Dec. 2025 )
=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))
=11.297 - 1.076 - ( 2.045 - max(0, 1.115 - 2.563+2.045))
=8.773

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -29.43% mean?
OD6 Metals (ASX:OD6) has a ROC % of -29.43% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on OD6 Metals and its competitors.
Is OD6 Metals' ROC % too high?
OD6 Metals' current ROC % is -29.43%.
How does OD6 Metals' ROC % compare to competitors?
OD6 Metals' ROC % of -29.43% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on OD6 Metals and its competitors. OD6 Metals's current ROC % is -29.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OD6 Metals stock overvalued right now?
OD6 Metals (ASX:OD6) has a current ROC % of -29.43%. The current ROC % is -29.43%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For OD6 Metals (ASX:OD6), the current ROC % is -29.43% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

OD6 Metals Business Description

Address C/- LCP Group, 1 Alvan Street, Level 1, Subiaco, Perth, WA, AUS, 6008
OD6 Metals Ltd is a mineral exploration company focused on the discovery and potential development of large-scale rare earth element (REE) deposits. The company's projects in the Splinter Rock Project and Grass Patch Project, which are located in the Goldfields-Esperance region of Western Australia, and other projects.