Silver Crown Royalties (NEOE:SCRI) ROC % : -73.72% (As of Sep. 2024)

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What is Silver Crown Royalties 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 %. Silver Crown Royalties's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -73.72%.

As of today (2024-12-11), Silver Crown Royalties's WACC % is 9.19%. Silver Crown Royalties's ROC % is -40.98% (calculated using TTM income statement data). Silver Crown Royalties earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Silver Crown Royalties ROC % Historical Data

The historical data trend for Silver Crown Royalties'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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Silver Crown Royalties ROC % Chart

Silver Crown Royalties Annual Data

Trend

Dec22

Dec23

ROC %

Silver Crown Royalties Quarterly Data
	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial				-	-	-	-204.83	-73.72

Silver Crown Royalties ROC % Calculation

Silver Crown Royalties'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 )
=	-0.076 * ( 1 - 0% )	/	( (0	+	0)	/ 1 )
=	-0.076	/	0
=	%

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	0.002	-	0.053	-	( 0	-	max(0, 0.053	-	0.002	+	0	))
=	0

	Invested Capital		(A: Dec. 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	))
=	0	-	0.127	-	( 0	-	max(0, 0.127	-	0	+	0	))
=	0

Silver Crown Royalties's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-3.668 * ( 1 - 0% )	/	( (4.103	+	5.848)	/ 2 )
=	-3.668	/	4.9755
=	-73.72 %

where

	Invested Capital		(Q: Jun. 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	))
=	8.728	-	1.443	-	( 3.659	-	max(0, 1.443	-	4.625	+	3.659	))
=	4.103

	Invested Capital		(Q: Sep. 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	))
=	8.674	-	1.139	-	( 1.717	-	max(0, 1.139	-	2.826	+	1.717	))
=	5.848

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Silver Crown Royalties (NEOE:SCRI) 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, Silver Crown Royalties's WACC % is 9.19%. Silver Crown Royalties's ROC % is -40.98% (calculated using TTM income statement data). Silver Crown Royalties 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.

Silver Crown Royalties ROC % Related Terms

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Silver Crown Royalties Business Description

Industry

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Traded in Other Exchanges

QS0:Germany

Address

100 King Street West, Suite 6200, Toronto, ON, CAN, M5X 1C8

Website

https://silvercrownroyalties.com

Silver Crown Royalties Inc operates as a silver-only royalty company focused on silver as by-product credits. It provides capital to a mining entity to apply towards some aspect of their operation, such as exploration, mine development, or facility construction, in exchange for receipt of a percentage of the miner's silver production.

Executives

Peter Bures

Director, Senior Officer

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