GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » ACG Metals Ltd (LSE:ACG) » Definitions » ROC %

ACG Metals (LSE:ACG) ROC % : -9.69% (As of Jun. 2024)


View and export this data going back to 2022. Start your Free Trial

What is ACG Metals 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 %. ACG Metals's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -9.69%.

As of today (2025-03-19), ACG Metals's WACC % is 10.32%. ACG Metals's ROC % is -92.13% (calculated using TTM income statement data). ACG Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.


ACG Metals ROC % Historical Data

The historical data trend for ACG Metals'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.

* Premium members only.

ACG Metals ROC % Chart

ACG Metals Annual Data
Trend
ROC %

ACG Metals Semi-Annual Data
Jun22 Dec22 Jun24
ROC % - -10.55 -9.69

ACG Metals ROC % Calculation

ACG Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

ACG Metals'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. 2022 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-6.46 * ( 1 - 0% )/( (129.867 + 3.506)/ 2 )
=-6.46/66.6865
=-9.69 %

where

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


ACG Metals  (LSE:ACG) 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, ACG Metals's WACC % is 10.32%. ACG Metals's ROC % is -92.13% (calculated using TTM income statement data). ACG Metals 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.


ACG Metals ROC % Related Terms

Thank you for viewing the detailed overview of ACG Metals's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


ACG Metals Business Description

Traded in Other Exchanges
Address
Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, VGB, VG1110
ACG Metals Ltd operates in the metals industry, with the copper sector. It intends to become a supplier of copper and other critical metals to the western OEM supply chain, with ESG and carbon footprint characteristics.

ACG Metals Headlines

No Headlines