GBGD (Global Gold) ROC %: -12.14% (As of Jun. 2017)


What is Global Gold ROC %?

Global Gold GBGD ROC % is -12.14% as of Jun. 2017.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Global Gold's annualized return on capital (ROC %) for the quarter that ended in Jun. 2017 was -12.14%.

As of today (2026-06-26), Global Gold's WACC % is 0.00%. Global Gold's ROC % is 0.00% (calculated using TTM income statement data). Global Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Global Gold  (OTCPK:GBGD) 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, Global Gold's WACC % is 0.00%. Global Gold's ROC % is 0.00% (calculated using TTM income statement data). Global Gold 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.

Global Gold ROC % Related Terms

Global Gold ROC % Historical Data

* Premium members only.

The historical data trend for Global Gold'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.

Global Gold ROC % Chart

Global Gold Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -69.84 -49.85 -40.91 -24.25 -12.88

Global Gold Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
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 -14.53 -12.25 -12.32 -14.95 -12.14

Global Gold ROC % Calculation

Global Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=-1.385 * ( 1 - 0% )/( (10.411 + 11.099)/ 2 )
=-1.385/10.755
=-12.88 %

where

Invested Capital(A: Dec. 2015 )
=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))
=2.624 - 8.953 - ( 0.012 - max(0, 17.48 - 0.74+0.012))
=10.411

Invested Capital(A: Dec. 2016 )
=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))
=2.544 - 10.463 - ( 0.078 - max(0, 19.802 - 0.784+0.078))
=11.099

Global Gold's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2017 is calculated as:

ROC % (Q: Jun. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2017 ) + Invested Capital (Q: Jun. 2017 ))/ count )
=-1.368 * ( 1 - 0% )/( (11.214 + 11.321)/ 2 )
=-1.368/11.2675
=-12.14 %

where

Invested Capital(Q: Mar. 2017 )
=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))
=2.566 - 10.948 - ( 0.054 - max(0, 20.351 - 0.755+0.054))
=11.214

Invested Capital(Q: Jun. 2017 )
=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))
=2.553 - 11.398 - ( 0.041 - max(0, 20.917 - 0.751+0.041))
=11.321

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -12.14% mean?
Global Gold (GBGD) has a ROC % of -12.14% as of Jun. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Global Gold and its competitors.
Is Global Gold's ROC % too high?
Global Gold's current ROC % is -12.14%.
How does Global Gold's ROC % compare to competitors?
Global Gold's ROC % of -12.14% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Global Gold and its competitors. Global Gold's current ROC % is -12.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global Gold stock overvalued right now?
Global Gold (GBGD) has a current ROC % of -12.14%. The current ROC % is -12.14%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Global Gold (GBGD), the current ROC % is -12.14% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Global Gold Business Description

Address 555 Theodore Fremd Avenue, Suite B-203, Rye, NY, USA, 10580
Global Gold Corp is an exploration-stage company. It operates as an international gold mining, development, and exploration company with mining properties in Armenia, Canada, and Chile. Business activity of the firm is functioning through the production of gold, silver, and other precious metals. The company holds interests in the Toukhmanuk property in the North Central Armenian Belt, the Marjan and an expanded Marjan North property, and other properties.