Copper 360 (JSE:CPR) ROC % : -9.36% (As of Aug. 2024)

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What is Copper 360 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 %. Copper 360's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was -9.36%.

As of today (2025-03-21), Copper 360's WACC % is 15.83%. Copper 360's ROC % is -6.73% (calculated using TTM income statement data). Copper 360 earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Copper 360 ROC % Historical Data

The historical data trend for Copper 360'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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Copper 360 ROC % Chart

Copper 360 Annual Data

Trend

Feb22

Feb23

Feb24

ROC %

-9.47

-1.20

-8.72

Copper 360 Semi-Annual Data
	Feb22	Aug22	Feb23	Aug23	Feb24	Aug24
ROC %	Get a 7-Day Free Trial			-0.06	-5.90	-2.22	-4.95	-9.36

Copper 360 ROC % Calculation

Copper 360's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2024 is calculated as:

	ROC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	-110.211 * ( 1 - 37.76% )	/	( (38.742	+	1534.171)	/ 2 )
=	-68.5953264	/	786.4565
=	-8.72 %

where

	Invested Capital		(A: Feb. 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	))
=	10.309	-	2.669	-	( 0.002	-	max(0, 31.124	-	0.022	+	0.002	))
=	38.742

	Invested Capital		(A: Feb. 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	))
=	1194.48	-	26.394	-	( 22.132	-	max(0, 437.74	-	71.655	+	22.132	))
=	1534.171

Copper 360's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2024 is calculated as:

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	-206.482 * ( 1 - 27.74% )	/	( (1534.171	+	1654.423)	/ 2 )
=	-149.2038932	/	1594.297
=	-9.36 %

where

	Invested Capital		(Q: Feb. 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	))
=	1194.48	-	26.394	-	( 22.132	-	max(0, 437.74	-	71.655	+	22.132	))
=	1534.171

	Invested Capital		(Q: Aug. 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	))
=	1365.745	-	58.957	-	( 0.141	-	max(0, 417.966	-	70.331	+	0.141	))
=	1654.423

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

Copper 360 (JSE:CPR) 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, Copper 360's WACC % is 15.83%. Copper 360's ROC % is -6.73% (calculated using TTM income statement data). Copper 360 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.

Copper 360 ROC % Related Terms

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Copper 360 Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Copper 360 Ltd (JSE:CPR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

1 Main Road, Nababeep, Nababeep, NC, ZAF, 8265

Website

https://www.copper360.co.za

Copper 360 Ltd is focused on processing historically mined copper rock dumps through a process of environmental clean-up, and mining surface and shallow copper resources. The group's operations are based in the Northern Cape province of South Africa.

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