Cross River Ventures (FRA:C6R) ROC % : -19.69% (As of Oct. 2023)

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What is Cross River Ventures 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 %. Cross River Ventures's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was -19.69%.

As of today (2024-05-21), Cross River Ventures's WACC % is 16.48%. Cross River Ventures's ROC % is -52.48% (calculated using TTM income statement data). Cross River Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cross River Ventures ROC % Historical Data

The historical data trend for Cross River Ventures'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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Cross River Ventures ROC % Chart

Cross River Ventures Annual Data

Trend

Jan19

Jan20

Jan21

Jan22

Jan23

ROC %

-338.46

-466.67

-112.00

-86.28

-151.16

Cross River Ventures Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
ROC %	Get a 7-Day Free Trial															-43.15	-104.08	-44.36	-29.14	-19.69

Cross River Ventures ROC % Calculation

Cross River Ventures's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2023 is calculated as:

	ROC % (A: Jan. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2022 )	+	Invested Capital (A: Jan. 2023 ))	/ count )
=	-3.281 * ( 1 - 0% )	/	( (2.654	+	1.687)	/ 2 )
=	-3.281	/	2.1705
=	-151.16 %

where

	Invested Capital		(A: Jan. 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	))
=	4.407	-	0.133	-	( 1.62	-	max(0, 0.292	-	2.409	+	1.62	))
=	2.654

	Invested Capital		(A: Jan. 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	))
=	2.178	-	1.222	-	( 0.451	-	max(0, 1.351	-	0.62	+	0.451	))
=	1.687

Cross River Ventures's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	-0.308 * ( 1 - 0% )	/	( (1.607	+	1.521)	/ 2 )
=	-0.308	/	1.564
=	-19.69 %

where

	Invested Capital		(Q: 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	))
=	1.757	-	0.957	-	( 0.127	-	max(0, 0.957	-	0.15	+	0.127	))
=	1.607

	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	))
=	1.747	-	1.016	-	( 0.191	-	max(0, 1.016	-	0.226	+	0.191	))
=	1.521

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

Cross River Ventures (FRA:C6R) 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, Cross River Ventures's WACC % is 16.48%. Cross River Ventures's ROC % is -52.48% (calculated using TTM income statement data). Cross River Ventures 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.

Cross River Ventures ROC % Related Terms

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Cross River Ventures (FRA:C6R) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Cross River Ventures Corp (FRA:C6R) » Definitions » ROC %

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CSRVF:USA CRVC:Canada

Address

800 West Pender Street, Suite 1430, Vancouver, BC, CAN, V6C 2V6

Website

https://www.crossriverventures.com

Cross River Ventures Corp is engaged in the identification, evaluation, exploration, and acquisition of mineral properties. Its projects include McVicar Gold Project, Shabu Lake Property, Ear Falls Property and Fuchsite Gold Project among others.

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