Cruz Battery Metals (Cruz Battery Metals) ROC % : -28.72% (As of Jan. 2024)

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What is Cruz Battery Metals 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 %. Cruz Battery Metals's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -28.72%.

As of today (2024-04-30), Cruz Battery Metals's WACC % is 12.89%. Cruz Battery Metals's ROC % is -33.78% (calculated using TTM income statement data). Cruz Battery Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cruz Battery Metals ROC % Historical Data

The historical data trend for Cruz Battery 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.

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Cruz Battery Metals ROC % Chart

Cruz Battery Metals Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROC %

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-44.43

-56.48

-36.81

-50.85

-55.07

Cruz Battery Metals Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial															-100.96	-42.03	-29.79	-34.24	-28.72

Cruz Battery Metals ROC % Calculation

Cruz Battery Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2023 is calculated as:

	ROC % (A: Jul. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2022 )	+	Invested Capital (A: Jul. 2023 ))	/ count )
=	-1.51 * ( 1 - 0% )	/	( (2.517	+	2.967)	/ 2 )
=	-1.51	/	2.742
=	-55.07 %

where

	Invested Capital		(A: Jul. 2022 )
=	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	))
=	2.582	-	0.196	-	( 0.095	-	max(0, 0.23	-	0.099	+	0.095	))
=	2.517

	Invested Capital		(A: Jul. 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	))
=	4.455	-	0.209	-	( 1.513	-	max(0, 0.245	-	1.524	+	1.513	))
=	2.967

Cruz Battery Metals's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-0.84 * ( 1 - 0% )	/	( (2.897	+	2.953)	/ 2 )
=	-0.84	/	2.925
=	-28.72 %

where

	Invested Capital		(Q: Oct. 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	))
=	4.206	-	0.199	-	( 1.317	-	max(0, 0.234	-	1.344	+	1.317	))
=	2.897

	Invested Capital		(Q: Jan. 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	))
=	4.122	-	0.162	-	( 1.17	-	max(0, 0.198	-	1.205	+	1.17	))
=	2.953

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

Cruz Battery Metals (OTCPK:BKTPF) 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, Cruz Battery Metals's WACC % is 12.89%. Cruz Battery Metals's ROC % is -33.78% (calculated using TTM income statement data). Cruz Battery 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.

Cruz Battery Metals ROC % Related Terms

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Cruz Battery Metals (Cruz Battery Metals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Cruz Battery Metals Corp (OTCPK:BKTPF) » Definitions » ROC %

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BR00:Germany CRUZ:Canada

Address

700 West Georgia Street, Suite 2905, Vancouver, BC, CAN, V7Y1K8

Website

https://www.cruzbatterymetals.com

Cruz Battery Metals Corp is an exploration company. Its principal business activities include acquiring and developing high-quality battery metals projects in ethical mining jurisdictions, essential for the rechargeable battery and renewable energy sectors. The projects of the company include War Eagle Cobalt, Diamond Project, Hector Cobalt Prospect, Other Cobalt Prospects, Yukon Quartz Claims, Idaho Cobal Belt Project, Idaho Star Cobalt Prospect, Nevada Clayton Valley W. Lithium Property, and Nevada Solar Lithium Project. The company operates in USA and Canada.

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