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Karelian Diamond Resources (LSE:KDR) ROC % : -2.57% (As of Nov. 2024)


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What is Karelian Diamond Resources 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 %. Karelian Diamond Resources's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -2.57%.

As of today (2025-03-19), Karelian Diamond Resources's WACC % is 11.32%. Karelian Diamond Resources's ROC % is -2.65% (calculated using TTM income statement data). Karelian Diamond Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Karelian Diamond Resources ROC % Historical Data

The historical data trend for Karelian Diamond Resources'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.

Karelian Diamond Resources ROC % Chart

Karelian Diamond Resources Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.96 -3.55 -3.07 -2.43 -3.20

Karelian Diamond Resources Semi-Annual Data
May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24
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 -2.85 -2.23 -4.25 -2.60 -2.57

Karelian Diamond Resources ROC % Calculation

Karelian Diamond Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2024 is calculated as:

ROC % (A: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2023 ) + Invested Capital (A: May. 2024 ))/ count )
=-0.357 * ( 1 - 0% )/( (10.934 + 11.402)/ 2 )
=-0.357/11.168
=-3.20 %

where

Karelian Diamond Resources's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

ROC % (Q: Nov. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2024 ) + Invested Capital (Q: Nov. 2024 ))/ count )
=-0.276 * ( 1 - 0% )/( (11.402 + 10.048)/ 2 )
=-0.276/10.725
=-2.57 %

where

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


Karelian Diamond Resources  (LSE:KDR) 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, Karelian Diamond Resources's WACC % is 11.32%. Karelian Diamond Resources's ROC % is -2.65% (calculated using TTM income statement data). Karelian Diamond Resources 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.


Karelian Diamond Resources ROC % Related Terms

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Karelian Diamond Resources Business Description

Traded in Other Exchanges
Address
Shannon Free Zone, Shannon Airport House, County Clare, Shannon, IRL, V14 E370
Karelian Diamond Resources PLC is an Ireland-based company which focuses on the discovery of diamond deposits in Finland. It is engaged in exploring for diamonds and evaluating an existing diamond prospect (diamondiferous kimberlite pipe) in the Karelian Craton of Finland. The company's diamond exploration projects include The Lahtojoki diamond project, The Seitapera diamondiferous kimberlite pipe, and The Riihivaara diamond exploration project which is in Kuopio, Kuhmo and Riihivaara respectively.

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