Bolivar Mining (Bolivar Mining) ROC % : -225.85% (As of Oct. 2006)

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What is Bolivar Mining 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 %. Bolivar Mining's annualized return on capital (ROC %) for the quarter that ended in Oct. 2006 was -225.85%.

As of today (2024-05-18), Bolivar Mining's WACC % is 0.00%. Bolivar Mining's ROC % is 0.00% (calculated using TTM income statement data). Bolivar Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bolivar Mining ROC % Historical Data

The historical data trend for Bolivar 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.

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Bolivar Mining ROC % Chart

Bolivar Mining Annual Data

Trend

Jan05

Jan06

ROC %

-8.10

Bolivar Mining Quarterly Data
	Jan05	Apr05	Jul05	Oct05	Jan06	Apr06	Jul06	Oct06
ROC %	Get a 7-Day Free Trial			-	-32.41	-110.65	-157.34	-225.85

Bolivar Mining ROC % Calculation

Bolivar Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2006 is calculated as:

	ROC % (A: Jan. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2005 )	+	Invested Capital (A: Jan. 2006 ))	/ count )
=	-0.035 * ( 1 - % )	/	( (0	+	0.432)	/ 1 )
=	-0.035	/	0.432
=	-8.10 %

where

	Invested Capital		(A: Jan. 2005 )
=	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	))
=	0	-	0.924	-	( 0	-	max(0, 0.924	-	0	+	0	))
=	0

	Invested Capital		(A: Jan. 2006 )
=	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	))
=	0	-	0.492	-	( 0	-	max(0, 0.924	-	0	+	0	))
=	0.432

Bolivar Mining's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2006 is calculated as:

	ROC % (Q: Oct. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2006 )	+	Invested Capital (Q: Oct. 2006 ))	/ count )
=	-3.18 * ( 1 - % )	/	( (1.396	+	1.42)	/ 2 )
=	-3.18	/	1.408
=	-225.85 %

where

	Invested Capital		(Q: Jul. 2006 )
=	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	))
=	0.691	-	0.853	-	( 0.005	-	max(0, 2.178	-	0.62	+	0.005	))
=	1.396

	Invested Capital		(Q: Oct. 2006 )
=	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	))
=	0.369	-	1.004	-	( 0.035	-	max(0, 2.345	-	0.29	+	0.035	))
=	1.42

Note: The Operating Income data used here is four times the quarterly (Oct. 2006) data.

Bolivar Mining (GREY:BOLV) 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, Bolivar Mining's WACC % is 0.00%. Bolivar Mining's ROC % is 0.00% (calculated using TTM income statement data). Bolivar 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.

Bolivar Mining ROC % Related Terms

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Bolivar Mining (Bolivar Mining) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Bolivar Mining Corp (GREY:BOLV) » Definitions » ROC %

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Traded in Other Exchanges

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Address

215 Dino Drive, Ann Arbor, MI, USA, 48103

Website

Bolivar Mining Corp is engaged in developing business in charging stations for electric vehicles.

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