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Top End Energy (ASX:TEE) ROC % : -239.89% (As of Dec. 2024)


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What is Top End Energy 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 %. Top End Energy's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -239.89%.

As of today (2025-03-20), Top End Energy's WACC % is 10.48%. Top End Energy's ROC % is -342.80% (calculated using TTM income statement data). Top End Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Top End Energy ROC % Historical Data

The historical data trend for Top End Energy'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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Top End Energy ROC % Chart

Top End Energy Annual Data
Trend Jun22 Jun23 Jun24
ROC %
-849.72 -375.55 -730.64

Top End Energy Semi-Annual Data
Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
ROC % Get a 7-Day Free Trial -368.89 -388.30 -180.98 -550.41 -239.89

Top End Energy ROC % Calculation

Top End Energy'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 )
=-3.255 * ( 1 - 0% )/( (0.555 + 0.336)/ 2 )
=-3.255/0.4455
=-730.64 %

where

Top End Energy's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-1.738 * ( 1 - 0% )/( (0.336 + 1.113)/ 2 )
=-1.738/0.7245
=-239.89 %

where

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

* 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.


Top End Energy  (ASX:TEE) 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, Top End Energy's WACC % is 10.48%. Top End Energy's ROC % is -342.80% (calculated using TTM income statement data). Top End Energy 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.


Top End Energy ROC % Related Terms

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Top End Energy Business Description

Traded in Other Exchanges
N/A
Address
10 Outram Street, Level 2, Perth, WA, AUS, 6005
Top End Energy Ltd operates in the oil and gas industry with a focus on exploring for oil, gas and other associated, and potentially marketable, product streams in Queensland and the Northern Territory. The company's projects include Tri Star Project, NT Territory Holdco Pty Ltd, and TG Project. The Group has identified one operating segment being the exploration for natural gas in Australia.

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