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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Goldrich Mining Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -9.00%.
As of today (2024-05-01), Goldrich Mining Co's WACC % is 15.41%. Goldrich Mining Co's ROC % is -10.52% (calculated using TTM income statement data). Goldrich Mining Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Goldrich Mining Co'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.
Goldrich Mining Co Annual Data | |||||||||||||||||||||
Trend | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | |||||||||||
ROC % | Get a 7-Day Free Trial | -26.91 | -20.46 | -19.03 | -15.08 | -11.22 |
Goldrich Mining Co Quarterly Data | ||||||||||||||||||||
Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | |
ROC % | Get a 7-Day Free Trial | -9.23 | -13.37 | -8.59 | -11.12 | -9.00 |
Goldrich Mining Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:
ROC % (A: Dec. 2022 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Dec. 2021 ) | + | Invested Capital (A: Dec. 2022 )) | / count ) |
= | -0.722 * ( 1 - 0% ) | / | ( (6.285 | + | 6.582) | / 2 ) |
= | -0.722 | / | 6.4335 | |||
= | -11.22 % |
where
Invested Capital | (A: Dec. 2021 ) | |||||||||||
= | 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 | )) |
= | 0.763 | - | 5.112 | - | ( 0.004 | - | max(0, 10.746 | - | 0.112 | + | 0.004 | )) |
= | 6.285 |
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 | )) |
= | 0.762 | - | 5.701 | - | ( 0.004 | - | max(0, 11.631 | - | 0.11 | + | 0.004 | )) |
= | 6.582 |
Goldrich Mining Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:
ROC % (Q: Sep. 2023 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Jun. 2023 ) | + | Invested Capital (Q: Sep. 2023 )) | / count ) |
= | -0.604 * ( 1 - 0% ) | / | ( (6.663 | + | 6.758) | / 2 ) |
= | -0.604 | / | 6.7105 | |||
= | -9.00 % |
where
Invested Capital | (Q: Jun. 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 | )) |
= | 0.696 | - | 6.2 | - | ( 0.001 | - | max(0, 12.211 | - | 0.044 | + | 0.001 | )) |
= | 6.663 |
Invested Capital | (Q: Sep. 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 | )) |
= | 0.689 | - | 6.466 | - | ( 0.026 | - | max(0, 12.572 | - | 0.037 | + | 0.026 | )) |
= | 6.758 |
Note: The Operating Income data used here is four times the quarterly (Sep. 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.
Goldrich Mining Co (OTCPK:GRMC) 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, Goldrich Mining Co's WACC % is 15.41%. Goldrich Mining Co's ROC % is -10.52% (calculated using TTM income statement data). Goldrich Mining Co 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.
Thank you for viewing the detailed overview of Goldrich Mining Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ted Riley Sharp | officer: Chief Financial Officer | 714 WHISPERWOOD COURT, NAMPA ID 83686 |
William Orchow | director | 87 P STREET, SALT LAKE CITY UT 84103 |
William V Schara | director | 3221 S REBECCA STREET, SPOKANE WA 99223 |
Nicholas Gallagher | 10 percent owner | 5 CHURCHFIELDS, THE K CLUB, STRAFFAN, KILDARE L2 0000 |
David Atkinson | director, 10 percent owner | 2754 NW CROSSING DRIVE, SUITE 205, BEND OR 97701 |
Stephen M Vincent | director | 255 MAPLE HILL ROAD, HOPKINS MN 55343 |
Michael Grant Rasmussen | director | 17412 N. MEADOVIEW LANE, NINE MILE FALLS WA 99026 |
Garrick Allen Mendham | director | P. O. BOX 668, KINGSFORD NSW C3 2032 |
Regent Pacific Group Ltd | 10 percent owner | SUITE 1001, HENLEY BUILDING, 5 QUEENS'S ROAD CENTRAL, HONG KONG K3 00000 |
Charles G Bigelow | director | 11562 DISCOVERY HEIGHTS CIRCLE, ANCHORAGE AK 99515 |
Kenneth S Eickerman | director | |
Forza Capital Management, L.l.c. | director, 10 percent owner | 2754 NW CROSSING DRIVE, SUITE 205, BEND OR 97701 |
Rab Special Situations (master) Fund Ltd | 10 percent owner | P.O. BOX 309, UGLAND HOUSE, GEORGE TOWN E9 KY1-1104 |
Rodney Alan Blakestad | officer: VP - exploration | 1602 W. PLACITA SIN NIEVE, SAHUARITA AZ 85629 |
Robert G Pate | officer: VP Operations | 8620 E PARKSIDE LANE, SPOKANE WA 99217 |
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