Orinoco Gold (ASX:OGX) ROC %: -18.81% (As of Jun. 2018)


What is Orinoco Gold ROC %?

Orinoco Gold ASX:OGX ROC % is -18.81% as of Jun. 2018. The stock has 3 warning signs 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 %. Orinoco Gold's annualized return on capital (ROC %) for the quarter that ended in Jun. 2018 was -18.81%.

As of today (2026-06-27), Orinoco Gold's WACC % is 0.00%. Orinoco Gold's ROC % is -606.58% (calculated using TTM income statement data). Orinoco Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Orinoco Gold  (ASX:OGX) 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, Orinoco Gold's WACC % is 0.00%. Orinoco Gold's ROC % is -606.58% (calculated using TTM income statement data). Orinoco 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.

Orinoco Gold ROC % Related Terms

Orinoco Gold ROC % Historical Data

* Premium members only.

The historical data trend for Orinoco 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.

Orinoco Gold ROC % Chart

Orinoco Gold Annual Data
Trend Jun12 Jun13 Dec15 Dec16 Dec17 Dec18
ROC %
Get a 7-Day Free Trial -92.25 -38.13 -43.91 -23.96 -36.07

Orinoco Gold Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -62.20 -14.58 -33.35 -18.81 -65.06

Orinoco Gold ROC % Calculation

Orinoco Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

ROC % (A: Dec. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2017 ) + Invested Capital (A: Dec. 2018 ))/ count )
=-10.428 * ( 1 - 0% )/( (42.645 + 15.182)/ 2 )
=-10.428/28.9135
=-36.07 %

where

Invested Capital(A: Dec. 2017 )
=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))
=35.769 - 10.797 - ( 3.479 - max(0, 22.485 - 4.812+3.479))
=42.645

Invested Capital(A: Dec. 2018 )
=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))
=4.349 - 8.243 - ( 0.111 - max(0, 20.409 - 1.333+0.111))
=15.182

Orinoco Gold's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2018 is calculated as:

ROC % (Q: Jun. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2017 ) + Invested Capital (Q: Jun. 2018 ))/ count )
=-6.682 * ( 1 - 0% )/( (42.645 + 28.389)/ 2 )
=-6.682/35.517
=-18.81 %

where

Invested Capital(Q: Dec. 2017 )
=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))
=35.769 - 10.797 - ( 3.479 - max(0, 22.485 - 4.812+3.479))
=42.645

Invested Capital(Q: Jun. 2018 )
=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))
=21.295 - 5.271 - ( 3.013 - max(0, 16.504 - 4.139+3.013))
=28.389

Note: The Operating Income data used here is two times the semi-annual (Jun. 2018) 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 -18.81% mean?
Orinoco Gold (ASX:OGX) has a ROC % of -18.81% as of Jun. 2018. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Orinoco Gold and its competitors.
Is Orinoco Gold's ROC % too high?
Orinoco Gold's current ROC % is -18.81%.
How does Orinoco Gold's ROC % compare to LSMG?
Orinoco Gold's ROC % of -18.81% 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 Orinoco Gold and its competitors. Orinoco Gold's current ROC % is -18.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orinoco Gold stock overvalued right now?
Orinoco Gold (ASX:OGX) has a current ROC % of -18.81%. The current ROC % is -18.81%. 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 Orinoco Gold (ASX:OGX), the current ROC % is -18.81% as of Jun. 2018. 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.

Orinoco Gold Business Description

Address 9/448 Roberts Road, Subiaco, WA, AUS, 6008
Orinoco Gold Ltd is a Brazilian-focused gold company. It is focussed on mining the Cascavel gold mine as well as unlocking the Faina Goldfields Project (Faina Project) located in the central Brazilian State of Goias. The company's segments include Gold and All Other. The Faina Project consists of a large tenement package of over 50 tenements that encompass the key Cascavel, Sertao and Tinteiro Projects, as well as numerous advanced gold exploration targets including Espanola, Elisio, Antenna, and Xupe.