NILA (Nilam Resources) ROC %: -8.46% (As of Oct. 2012)


What is Nilam Resources ROC %?

Nilam Resources NILA -99.00% ROC % is -8.46% as of Oct. 2012.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nilam Resources's annualized return on capital (ROC %) for the quarter that ended in Oct. 2012 was -8.46%.

As of today (2026-06-24), Nilam Resources's WACC % is 0.00%. Nilam Resources's ROC % is 0.00% (calculated using TTM income statement data). Nilam Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Nilam Resources  (OTCPK:NILA) 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, Nilam Resources's WACC % is 0.00%. Nilam Resources's ROC % is 0.00% (calculated using TTM income statement data). Nilam 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.


Nilam Resources ROC % Related Terms


Nilam Resources ROC % Historical Data

* Premium members only.

The historical data trend for Nilam 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.

Nilam Resources ROC % Chart

Nilam Resources Annual Data
Trend Apr06 Apr07 Apr08 Apr09 Apr10 Apr11 Apr12
ROC %
Get a 7-Day Free Trial -337.00 -241.50 -187.62 -154.55 -171.03

Nilam Resources Quarterly Data
Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12
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 -16.21 -10.41 -180.48 -15.27 -8.46

Nilam Resources ROC % Calculation

Nilam Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2012 is calculated as:

ROC % (A: Apr. 2012 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2011 ) + Invested Capital (A: Apr. 2012 ))/ count )
=-0.425 * ( 1 - 0% )/( (0.1 + 0.397)/ 2 )
=-0.425/0.2485
=-171.03 %

where

Nilam Resources's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2012 is calculated as:

ROC % (Q: Oct. 2012 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2012 ) + Invested Capital (Q: Oct. 2012 ))/ count )
=-0.028 * ( 1 - 0% )/( (0.389 + 0.273)/ 2 )
=-0.028/0.331
=-8.46 %

where

Note: The Operating Income data used here is four times the quarterly (Oct. 2012) 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 -8.46% mean?
Nilam Resources (NILA) has a ROC % of -8.46% as of Oct. 2012. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nilam Resources and its competitors.
Is Nilam Resources' ROC % too high?
Nilam Resources' current ROC % is -8.46%.
How does Nilam Resources' ROC % compare to EMESQ and BLAIF?
Nilam Resources' ROC % of -8.46% can be compared against companies in the Metals & Mining 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 a Metals & Mining company?
A good ROC % depends on the Metals & Mining 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 Nilam Resources and its competitors. Nilam Resources's current ROC % is -8.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nilam Resources stock overvalued right now?
Nilam Resources (NILA) has a current ROC % of -8.46%. The current ROC % is -8.46%. 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 Nilam Resources (NILA), the current ROC % is -8.46% as of Oct. 2012. 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.

Nilam Resources Business Description

Address 2801 Bickford Avenue, Suite 103-366, Snohomish, WA, USA, 98290
Nilam Resources Inc is in the business of developing and investing in and managing early-stage companies.