NMREF (Namibia Critical Metals) ROC % : -2.28% (As of Aug. 2024)

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What is Namibia Critical Metals 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 %. Namibia Critical Metals's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was -2.28%.

As of today (2024-12-15), Namibia Critical Metals's WACC % is 3.76%. Namibia Critical Metals's ROC % is -3.20% (calculated using TTM income statement data). Namibia Critical Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Namibia Critical Metals ROC % Historical Data

The historical data trend for Namibia Critical Metals'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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Namibia Critical Metals ROC % Chart

Namibia Critical Metals Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

ROC %

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-2.58

-5.09

-2.49

-2.97

-3.09

Namibia Critical Metals Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROC %	Get a 7-Day Free Trial															-1.70	-5.03	-2.28	-3.13	-2.28

Namibia Critical Metals ROC % Calculation

Namibia Critical Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2023 is calculated as:

	ROC % (A: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2022 )	+	Invested Capital (A: Nov. 2023 ))	/ count )
=	-0.59 * ( 1 - 0% )	/	( (19.864	+	18.289)	/ 2 )
=	-0.59	/	19.0765
=	-3.09 %

where

	Invested Capital		(A: Nov. 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	))
=	20.512	-	0.296	-	( 0.77	-	max(0, 0.927	-	1.279	+	0.77	))
=	19.864

	Invested Capital		(A: Nov. 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	))
=	18.752	-	0.428	-	( 0.902	-	max(0, 1.075	-	1.11	+	0.902	))
=	18.289

Namibia Critical Metals's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2024 is calculated as:

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	-0.412 * ( 1 - 0% )	/	( (17.987	+	18.151)	/ 2 )
=	-0.412	/	18.069
=	-2.28 %

where

	Invested Capital		(Q: May. 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	))
=	18.29	-	0.12	-	( 0.42	-	max(0, 0.419	-	0.602	+	0.42	))
=	17.987

	Invested Capital		(Q: Aug. 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	))
=	18.45	-	0.196	-	( 0.517	-	max(0, 0.643	-	0.746	+	0.517	))
=	18.151

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

Namibia Critical Metals (OTCPK:NMREF) 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, Namibia Critical Metals's WACC % is 3.76%. Namibia Critical Metals's ROC % is -3.20% (calculated using TTM income statement data). Namibia Critical Metals 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.

Namibia Critical Metals ROC % Related Terms

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Namibia Critical Metals Business Description

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NMI:Canada

Address

1550 Bedford Highway, Suite 802, Sun Tower, Halifax, NS, CAN, B4A 1E6

Website

https://www.namibiacriticalmetals.com

Namibia Critical Metals Inc y is engaged in the exploration of critical metals and gold in Namibia All the exploration assets of the company are located in Namibia. Its projects include Lofdal, Grootfontein, Otjitazu, and others. Lofdal is a globally significant deposit of the heavy rare earth metals dysprosium and terbium. It has one reportable operating segment, being that of acquisition, exploration, and evaluation activities, and all exploration and evaluation assets are located in Namibia.