California Gold Mining (California Gold Mining) ROC % : -18.69% (As of May. 2021)

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What is California Gold 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 %. California Gold Mining's annualized return on capital (ROC %) for the quarter that ended in May. 2021 was -18.69%.

As of today (2024-05-16), California Gold Mining's WACC % is 13.04%. California Gold Mining's ROC % is -15.78% (calculated using TTM income statement data). California Gold Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

California Gold Mining ROC % Historical Data

The historical data trend for California Gold 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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California Gold Mining ROC % Chart

California Gold Mining Annual Data

Trend

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

ROC %

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-105.81

-30.61

-59.84

-43.85

-18.72

California Gold Mining Quarterly Data
	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21
ROC %	Get a 7-Day Free Trial															-9.37	-21.74	-11.11	-12.50	-18.69

California Gold Mining ROC % Calculation

California Gold Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2020 is calculated as:

	ROC % (A: Aug. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2019 )	+	Invested Capital (A: Aug. 2020 ))	/ count )
=	-1.498 * ( 1 - 0% )	/	( (7.258	+	8.747)	/ 2 )
=	-1.498	/	8.0025
=	-18.72 %

where

	Invested Capital		(A: Aug. 2019 )
=	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	))
=	7.117	-	0.299	-	( 0.053	-	max(0, 1.629	-	1.189	+	0.053	))
=	7.258

	Invested Capital		(A: Aug. 2020 )
=	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	))
=	6.365	-	1.898	-	( 0.009	-	max(0, 4.885	-	0.605	+	0.009	))
=	8.747

California Gold Mining's annualized Return on Capital (ROC %) for the quarter that ended in May. 2021 is calculated as:

	ROC % (Q: May. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2021 )	+	Invested Capital (Q: May. 2021 ))	/ count )
=	-1.496 * ( 1 - 0% )	/	( (7.974	+	8.037)	/ 2 )
=	-1.496	/	8.0055
=	-18.69 %

where

	Invested Capital		(Q: Feb. 2021 )
=	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	))
=	5.75	-	2.125	-	( 0.026	-	max(0, 5.004	-	0.655	+	0.026	))
=	7.974

	Invested Capital		(Q: May. 2021 )
=	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	))
=	5.777	-	2.48	-	( 0.139	-	max(0, 5.553	-	0.813	+	0.139	))
=	8.037

Note: The Operating Income data used here is four times the quarterly (May. 2021) data.

California Gold Mining (OTCPK:CFGMF) 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, California Gold Mining's WACC % is 13.04%. California Gold Mining's ROC % is -15.78% (calculated using TTM income statement data). California Gold 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.

California Gold Mining ROC % Related Terms

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California Gold Mining (California Gold Mining) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » California Gold Mining Inc (OTCPK:CFGMF) » Definitions » ROC %

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Address

1800, 130 King Street W., Toronto, ON, CAN, M5X 1E3

Website

http://www.caligold.ca

California Gold Mining Inc is a Canada-based mineral exploration company. Principally, it is engaged in the acquisition, exploration, and development of mineral resource properties. The company's project consists of Fremont project and Dingman project.