Parabellum Resources (ASX:PBL) ROC % : -24.22% (As of Jun. 2024)

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What is Parabellum 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 %. Parabellum Resources's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -24.22%.

As of today (2025-03-04), Parabellum Resources's WACC % is 6.66%. Parabellum Resources's ROC % is -94.77% (calculated using TTM income statement data). Parabellum Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Parabellum Resources ROC % Historical Data

The historical data trend for Parabellum 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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Parabellum Resources ROC % Chart

Parabellum Resources Annual Data

Trend

Jun22

Jun23

Jun24

ROC %

-56.99

-70.66

-12.25

Parabellum Resources Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial			-147.32	-24.49	-13.94	-24.22	-171.08

Parabellum Resources ROC % Calculation

Parabellum 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 )
=	-0.65 * ( 1 - 0% )	/	( (8.069	+	2.546)	/ 2 )
=	-0.65	/	5.3075
=	-12.25 %

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	))
=	11.05	-	0.297	-	( 4.976	-	max(0, 2.425	-	5.109	+	4.976	))
=	8.069

	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	))
=	4.276	-	0.149	-	( 1.635	-	max(0, 0.149	-	1.73	+	1.635	))
=	2.546

Parabellum Resources'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 )
=	-0.582 * ( 1 - 0% )	/	( (2.26	+	2.546)	/ 2 )
=	-0.582	/	2.403
=	-24.22 %

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	))
=	4.483	-	0.153	-	( 2.085	-	max(0, 0.153	-	2.223	+	2.085	))
=	2.26

	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	))
=	4.276	-	0.149	-	( 1.635	-	max(0, 0.149	-	1.73	+	1.635	))
=	2.546

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

Parabellum Resources (ASX:PBL) 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, Parabellum Resources's WACC % is 6.66%. Parabellum Resources's ROC % is -94.77% (calculated using TTM income statement data). Parabellum 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.

Parabellum Resources ROC % Related Terms

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Parabellum Resources Business Description

Industry

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Traded in Other Exchanges

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Address

52 Ord Street, West Perth, WA, AUS, 6005

Website

https://www.parabellumresources.com.au

Parabellum Resources Ltd is an exploration company focused on the discovery of copper and other base metal mineral reserves in Australia. Its projects include Khotgar Rare Earths Project, Nyngan/Cobar Copper & Gold projects.