Endomines Finland Oyj (FRA:H13) ROC % : 0.31% (As of Jun. 2024)

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What is Endomines Finland Oyj 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 %. Endomines Finland Oyj's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.31%.

As of today (2024-12-14), Endomines Finland Oyj's WACC % is 9.77%. Endomines Finland Oyj's ROC % is -3.35% (calculated using TTM income statement data). Endomines Finland Oyj earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Endomines Finland Oyj ROC % Historical Data

The historical data trend for Endomines Finland Oyj'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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Endomines Finland Oyj ROC % Chart

Endomines Finland Oyj Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-38.77

-16.44

-5.32

Endomines Finland Oyj Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-34.83	3.39	-3.12	-7.68	0.31

Endomines Finland Oyj ROC % Calculation

Endomines Finland Oyj's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-2.9 * ( 1 - 0% )	/	( (51.1	+	58)	/ 2 )
=	-2.9	/	54.55
=	-5.32 %

where

	Invested Capital		(A: Dec. 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	))
=	55	-	4.7	-	( 3.7	-	max(0, 6.9	-	6.1	+	3.7	))
=	51.1

	Invested Capital		(A: 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	))
=	58.9	-	5	-	( 1.2	-	max(0, 7.7	-	3.6	+	1.2	))
=	58

Endomines Finland Oyj's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	0.2 * ( 1 - 0% )	/	( (58	+	69.8)	/ 2 )
=	0.2	/	63.9
=	0.31 %

where

	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	))
=	58.9	-	5	-	( 1.2	-	max(0, 7.7	-	3.6	+	1.2	))
=	58

	Invested Capital		(Q: Jun. 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	))
=	64.5	-	4.7	-	( 3	-	max(0, 15.4	-	5.4	+	3	))
=	69.8

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Endomines Finland Oyj (FRA:H13) 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, Endomines Finland Oyj's WACC % is 9.77%. Endomines Finland Oyj's ROC % is -3.35% (calculated using TTM income statement data). Endomines Finland Oyj 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.

Endomines Finland Oyj ROC % Related Terms

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Endomines Finland Oyj Business Description

Industry

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Traded in Other Exchanges

PAMPALO:Finland

Address

Ahventie 4 A, Espoo, FIN, 02170

Website

https://www.endomines.com

Endomines Finland Oyj is a mining and exploration company with a primary focus on gold. It is engaged in mining operations at the Pampalo mine in Ilomantsi, and in exploration activities along the Karelian Gold Line in Eastern Finland. It also owns the rights to seven gold deposits in the United States. The company's reportable operating segments are; Pampalo production, Karelian gold line, and USA operations. The Pampalo production segment which generates key revenue for the company consists of the operations of the underground mine and open pit, the operations of the concentrator, and the sale of gold concentrate.

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