Balamara Resources (FRA:CDU) ROC % : -81.23% (As of Dec. 2014)

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What is Balamara 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 %. Balamara Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2014 was -81.23%.

As of today (2024-06-09), Balamara Resources's WACC % is 0.00%. Balamara Resources's ROC % is 0.00% (calculated using TTM income statement data). Balamara Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Balamara Resources ROC % Historical Data

The historical data trend for Balamara 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.

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Balamara Resources ROC % Chart

Balamara Resources Annual Data

Trend

Jun02

Jun03

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

ROC %

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-62.53

-86.04

-256.87

-130.53

-283.87

Balamara Resources Semi-Annual Data
	Dec02	Jun03	Dec03	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14
ROC %	Get a 7-Day Free Trial															-116.46	-103.15	-163.65	-356.90	-81.23

Balamara Resources ROC % Calculation

Balamara Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2014 is calculated as:

	ROC % (A: Jun. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2013 )	+	Invested Capital (A: Jun. 2014 ))	/ count )
=	-8.956 * ( 1 - 0% )	/	( (4.705	+	1.605)	/ 2 )
=	-8.956	/	3.155
=	-283.87 %

where

	Invested Capital		(A: Jun. 2013 )
=	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	))
=	5.335	-	1.394	-	( 0.311	-	max(0, 1.394	-	0.63	+	0.311	))
=	4.705

	Invested Capital		(A: Jun. 2014 )
=	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	))
=	2.287	-	0.688	-	( 0.269	-	max(0, 0.915	-	0.909	+	0.269	))
=	1.605

Balamara Resources's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2014 is calculated as:

	ROC % (Q: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Dec. 2014 ))	/ count )
=	-3.978 * ( 1 - 0% )	/	( (1.605	+	8.19)	/ 2 )
=	-3.978	/	4.8975
=	-81.23 %

where

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	2.287	-	0.688	-	( 0.269	-	max(0, 0.915	-	0.909	+	0.269	))
=	1.605

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	9.818	-	1.112	-	( 1.375	-	max(0, 1.112	-	1.628	+	1.375	))
=	8.19

Note: The Operating Income data used here is two times the semi-annual (Dec. 2014) data.

Balamara Resources (FRA:CDU) 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, Balamara Resources's WACC % is 0.00%. Balamara Resources's ROC % is 0.00% (calculated using TTM income statement data). Balamara 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.

Balamara Resources ROC % Related Terms

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Balamara Resources (FRA:CDU) Business Description

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Website

http://www.balamara.com.au

Balamara Resources Ltd formerly known as Sultan Corporation Limited was incorporated in New South Wales on 16 August 1993 under the name of Asia-Pacific Minerals NL and on 21 November 1993 it changed its name to Caledonian Pacific Minerals NL. On 13 May, 2000 the Company changed its name again to Quadtel NL. The name of the Company was changed once more to Wytomic Limited on 17 February, 2005. The Company is engaged in exploration of mineral resources and reserves, primarily in Central Europe. It acquires assets at low cost with significant upside potential and develops them to a pre-production status. The Company's projects are located in Poland, Montenegro, Bosnia and NSW Australia. It operates in three reportable segments: Exploration Balkans region, Exploration Poland, and Exploration Australia.

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