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FE Battery Metals (FE Battery Metals) ROC % : -93.23% (As of Dec. 2023)


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What is FE 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 %. FE Battery Metals's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -93.23%.

As of today (2024-04-30), FE Battery Metals's WACC % is 16.28%. FE Battery Metals's ROC % is -71.15% (calculated using TTM income statement data). FE Battery Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

FE Battery Metals ROC % Historical Data

The historical data trend for FE 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.

* Premium members only.

FE Battery Metals ROC % Chart

FE Battery Metals Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -689.04 -351.16 -366.13 -115.68 -73.66

FE Battery Metals Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Mar22 Dec22 Mar23 Dec23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -87.74 - -26.29 -187.68 -93.23

FE Battery Metals ROC % Calculation

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

ROC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=-4.095 * ( 1 - 0% )/( (5.128 + 5.991)/ 2 )
=-4.095/5.5595
=-73.66 %

where

Invested Capital(A: Mar. 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))
=5.453 - 0.237 - ( 0.088 - max(0, 0.339 - 0.701+0.088))
=5.128

Invested Capital(A: Mar. 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))
=9.509 - 2.06 - ( 3.217 - max(0, 2.567 - 4.025+3.217))
=5.991

FE Battery Metals's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-5.504 * ( 1 - 0% )/( (5.991 + 5.816)/ 2 )
=-5.504/5.9035
=-93.23 %

where

Invested Capital(Q: Mar. 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))
=9.509 - 2.06 - ( 3.217 - max(0, 2.567 - 4.025+3.217))
=5.991

Invested Capital(Q: Dec. 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))
=7.996 - 0.561 - ( 1.866 - max(0, 0.679 - 2.298+1.866))
=5.816

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) 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.

FE Battery Metals  (OTCPK:FEMFF) 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, FE Battery Metals's WACC % is 16.28%. FE Battery Metals's ROC % is -71.15% (calculated using TTM income statement data). FE 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.

FE Battery Metals ROC % Related Terms

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FE Battery Metals (FE Battery Metals) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » FE Battery Metals Corp (OTCPK:FEMFF) » Definitions » ROC %
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Traded in Other Exchanges
V95:Germany FE:Canada
Address
1055 West Georgia Street, Suite 2421, Vancouver, BC, CAN, V6E 3P3
Website
https://www.febatterymetals.com
FE Battery Metals Corp is focused on identifying, exploring, and advancing early-stage lithium pegmatite projects in Canada. The company's projects include Augustus Lithium Property, Falcon Lake Lithium Property, and North Spirit Lithium Property.