Sinovus Mining (ASX:SNV) ROC %: -26.97% (As of Dec. 2015)

What is Sinovus Mining ROC %?

Sinovus Mining ASX:SNV ROC % is -26.97% as of Dec. 2015. The stock has 4 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 %. Sinovus Mining's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was -26.97%.

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

Sinovus Mining (ASX:SNV) 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, Sinovus Mining's WACC % is 0.00%. Sinovus Mining's ROC % is 0.00% (calculated using TTM income statement data). Sinovus Mining 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.

Sinovus Mining ROC % Related Terms

Sinovus Mining ROC % Historical Data

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The historical data trend for Sinovus Mining'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.

Sinovus Mining ROC % Chart

Sinovus Mining Annual Data

Trend

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

ROC %

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-124.35

-32.54

-24.71

-25.04

-19.85

Sinovus Mining Semi-Annual Data
	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16
ROC %	Get a 7-Day Free Trial													-21.97	-45.78	-7.48	-26.97	-16.84

Sinovus Mining ROC % Calculation

Sinovus Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2016 is calculated as:

	ROC % (A: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2015 )	+	Invested Capital (A: Jun. 2016 ))	/ count )
=	-0.45 * ( 1 - 0% )	/	( (2.143	+	2.39)	/ 2 )
=	-0.45	/	2.2665
=	-19.85 %

where

	Invested Capital		(A: Jun. 2015 )
=	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	))
=	1.888	-	0.239	-	( 0.004	-	max(0, 0.519	-	0.025	+	0.004	))
=	2.143

	Invested Capital		(A: Jun. 2016 )
=	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	))
=	1.898	-	0.404	-	( 0.017	-	max(0, 0.934	-	0.038	+	0.017	))
=	2.39

Sinovus Mining's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	-0.54 * ( 1 - 0% )	/	( (2.143	+	1.862)	/ 2 )
=	-0.54	/	2.0025
=	-26.97 %

where

	Invested Capital		(Q: Jun. 2015 )
=	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	))
=	1.888	-	0.239	-	( 0.004	-	max(0, 0.519	-	0.025	+	0.004	))
=	2.143

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	1.877	-	0.737	-	( 0.001	-	max(0, 0.737	-	0.015	+	0.001	))
=	1.862

Note: The Operating Income data used here is two times the semi-annual (Dec. 2015) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -26.97% mean?

Sinovus Mining (ASX:SNV) has a ROC % of -26.97% as of Dec. 2015. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sinovus Mining and its competitors.

Is Sinovus Mining's ROC % too high?

Sinovus Mining's current ROC % is -26.97%.

How does Sinovus Mining's ROC % compare to competitors?

Sinovus Mining's ROC % of -26.97% 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 Sinovus Mining and its competitors. Sinovus Mining's current ROC % is -26.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Sinovus Mining stock overvalued right now?

Sinovus Mining (ASX:SNV) has a current ROC % of -26.97%. The current ROC % is -26.97%. 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 Sinovus Mining (ASX:SNV), the current ROC % is -26.97% as of Dec. 2015. 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.

Sinovus Mining Business Description

Industry Basic Materials Metals & Mining

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Address 32 Martin Place, Level 10, Sydney, NSW, AUS, 2000

Website http://www.sinovus.com.au

Sinovus Mining Ltd is a mineral resource company. It engaged in developing its gold assets in the Heilongjiang region of north-eastern China. The Company's main projects include: Xiangguang Silver Project, Laogouxi Gold Project, YangShan Coal Mine and Paltar Petroleum Limited.