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Kendrick Resources (LSE:KEN) ROC % : -9.85% (As of Jun. 2024)


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What is Kendrick 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 %. Kendrick Resources's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -9.85%.

As of today (2025-03-16), Kendrick Resources's WACC % is 9.87%. Kendrick Resources's ROC % is -13.29% (calculated using TTM income statement data). Kendrick Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Kendrick Resources ROC % Historical Data

The historical data trend for Kendrick 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.

Kendrick Resources ROC % Chart

Kendrick Resources Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial -11.03 -868.18 -40.88 -15.49 -14.43

Kendrick Resources Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only -15.60 -13.79 -11.28 -16.69 -9.85

Kendrick Resources ROC % Calculation

Kendrick Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-0.64 * ( 1 - 0% )/( (4.006 + 4.866)/ 2 )
=-0.64/4.436
=-14.43 %

where

Kendrick Resources'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. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-0.478 * ( 1 - 0% )/( (4.866 + 4.838)/ 2 )
=-0.478/4.852
=-9.85 %

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.


Kendrick Resources  (LSE:KEN) 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, Kendrick Resources's WACC % is 9.87%. Kendrick Resources's ROC % is -13.29% (calculated using TTM income statement data). Kendrick 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.


Kendrick Resources ROC % Related Terms

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Kendrick Resources Business Description

Traded in Other Exchanges
N/A
Address
7/8 Kendrick Mews, South Kensington, London, GBR, SW7 3HG
Kendrick Resources PLC is a mineral exploration and development company with projects based across Scandinavia. The principal of its business is to explore the opportunities within the natural resources sector with a focus on battery, base, and precious metals including but not limited to vanadium and nickel. The company has several projects in different stages such as the Airijoki and Koitelainen vanadium projects in Sweden and Finland respectively and the Espedalen nickel-copper project in Norway. The other projects include the Njuggtraskliden and Mjovattnet exploration projects and the Kullberget, Simesvallen, and Sumassjon exploration projects.