New World Resources (LSE:NWR) ROC %: -17.29% (As of Dec. 2015)


What is New World Resources ROC %?

New World Resources LSE:NWR ROC % is -17.29% as of Dec. 2015. The stock has 4 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. New World Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was -17.29%.

As of today (2026-06-28), New World Resources's WACC % is 0.00%. New World Resources's ROC % is -256.28% (calculated using TTM income statement data). New World Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

New World Resources  (LSE:NWR) 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, New World Resources's WACC % is 0.00%. New World Resources's ROC % is -256.28% (calculated using TTM income statement data). New World 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.

New World Resources ROC % Related Terms

New World Resources ROC % Historical Data

* Premium members only.

The historical data trend for New World 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.

New World Resources ROC % Chart

New World Resources Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.04 0.00 -11.87 0.00 -17.29

New World Resources Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 -8.15 -14.31 -6.85 -20.56 -17.29

New World Resources ROC % Calculation

New World Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

ROC % (A: Dec. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2014 ) + Invested Capital (A: Dec. 2015 ))/ count )
=-36.063 * ( 1 - 0.21% )/( (281.065 + 135.187)/ 2 )
=-35.9872677/208.126
=-17.29 %

where

Invested Capital(A: Dec. 2014 )
=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))
=459.51 - 106.761 - ( 100.881 - max(0, 114.047 - 185.731+100.881))
=281.065

Invested Capital(A: Dec. 2015 )
=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))
=232.462 - 91.122 - ( 62.5 - max(0, 124.357 - 130.51+62.5))
=135.187

New World Resources's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:

ROC % (Q: Dec. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2015 ) + Invested Capital (Q: Dec. 2015 ))/ count )
=-34.276 * ( 1 - 1.53% )/( (255.137 + 135.187)/ 2 )
=-33.7515772/195.162
=-17.29 %

where

Invested Capital(Q: Sep. 2015 )
=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))
=387.563 - 102.363 - ( 42.03 - max(0, 109.027 - 139.09+42.03))
=255.137

Invested Capital(Q: Dec. 2015 )
=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))
=232.462 - 91.122 - ( 62.5 - max(0, 124.357 - 130.51+62.5))
=135.187

Note: The Operating Income data used here is four times the quarterly (Dec. 2015) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -17.29% mean?
New World Resources (LSE:NWR) has a ROC % of -17.29% as of Dec. 2015. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on New World Resources and its competitors.
Is New World Resources' ROC % too high?
New World Resources' current ROC % is -17.29%.
How does New World Resources' ROC % compare to WMLPQ?
New World Resources' ROC % of -17.29% can be compared against companies in the Other Energy Sources industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Other Energy Sources company?
A good ROC % depends on the Other Energy Sources industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on New World Resources and its competitors. New World Resources's current ROC % is -17.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New World Resources stock overvalued right now?
New World Resources (LSE:NWR) has a current ROC % of -17.29%. The current ROC % is -17.29%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For New World Resources (LSE:NWR), the current ROC % is -17.29% as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

New World Resources Business Description

Address Herengracht 448, Amsterdam, NLD, 1017 CA
New World Resources PLC is a coking and thermal coal producer for the steel and energy sectors in Central Europe. The company's hard coal reserves are situated in the Upper Silesian basin, covering an area of approximately 120 square kilometers. The company's customer includes ArcelorMittal, U.S. Steel, voestalpine, Dalkia, CEZ, Verbund, Moravia Steel, and ThyssenKrupp. New World Resources operates in Czech Republic, Slovakia, Austria, Poland, and Germany.