DLP Resources (DLP Resources) ROC % : -366.28% (As of Jan. 2024)

View and export this data going back to 2021. Start your Free Trial

What is DLP Resources 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 %. DLP Resources's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -366.28%.

As of today (2024-05-31), DLP Resources's WACC % is 10.48%. DLP Resources's ROC % is -443.32% (calculated using TTM income statement data). DLP Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

DLP Resources ROC % Historical Data

The historical data trend for DLP Resources'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.

* Premium members only.

DLP Resources ROC % Chart

DLP Resources Annual Data

Trend

Apr20

Apr21

Apr22

ROC %

-1,691.89

-489.26

DLP Resources Quarterly Data
	Jan20	Jul20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial									-702.86	-354.33	-892.11	-575.43	-366.28

DLP Resources ROC % Calculation

DLP Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2022 is calculated as:

	ROC % (A: Apr. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2021 )	+	Invested Capital (A: Apr. 2022 ))	/ count )
=	-1.595 * ( 1 - 0% )	/	( (0.189	+	0.463)	/ 2 )
=	-1.595	/	0.326
=	-489.26 %

where

	Invested Capital		(A: Apr. 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	))
=	1.209	-	0.141	-	( 0.924	-	max(0, 0.141	-	1.02	+	0.924	))
=	0.189

	Invested Capital		(A: Apr. 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	))
=	1.479	-	0.059	-	( 0.957	-	max(0, 0.127	-	1.096	+	0.957	))
=	0.463

DLP Resources'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 )
=	-4.236 * ( 1 - 0% )	/	( (1.092	+	1.221)	/ 2 )
=	-4.236	/	1.1565
=	-366.28 %

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	))
=	2.668	-	0.402	-	( 1.452	-	max(0, 0.402	-	1.576	+	1.452	))
=	1.092

	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	))
=	1.924	-	0.151	-	( 0.628	-	max(0, 0.151	-	0.703	+	0.628	))
=	1.221

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

DLP Resources (OTCPK:DLPRF) 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, DLP Resources's WACC % is 10.48%. DLP Resources's ROC % is -443.32% (calculated using TTM income statement data). DLP Resources 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.

DLP Resources ROC % Related Terms

Thank you for viewing the detailed overview of DLP Resources's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

DLP Resources (DLP Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » DLP Resources Inc (OTCPK:DLPRF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

DLP:Canada

Address

135 - 10th Avenue S., Suite 201, Cranbrook, BC, CAN, V1C 2N1

Website

https://www.dlpresourcesinc.com

DLP Resources Inc is an operator of a mineral exploration company intended to focus on exploring base metals, cobalt, and minerals in Southeastern British Columbia. The company's mineral portfolio in Southeastern British Columbia consists of Aldridge 1, Aldridge 2, Redburn, Hungry Creek, DD, Moby Dick, and NZOU, and in Peru consists of Aurora and Esperanza, planned to design, implement and manage cost-effective and successful exploration programs.