PMMEF (Premium Exploration) ROC %: -94.26% (As of Sep. 2014)


What is Premium Exploration ROC %?

Premium Exploration PMMEF -90.00% ROC % is -94.26% as of Sep. 2014.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Premium Exploration's annualized return on capital (ROC %) for the quarter that ended in Sep. 2014 was -94.26%.

As of today (2026-06-26), Premium Exploration's WACC % is 0.00%. Premium Exploration's ROC % is 0.00% (calculated using TTM income statement data). Premium Exploration earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Premium Exploration  (OTCPK:PMMEF) 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, Premium Exploration's WACC % is 0.00%. Premium Exploration's ROC % is 0.00% (calculated using TTM income statement data). Premium Exploration 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.

Premium Exploration ROC % Related Terms

Premium Exploration ROC % Historical Data

* Premium members only.

The historical data trend for Premium Exploration'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 Exploration ROC % Chart

Premium Exploration Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROC %
Get a 7-Day Free Trial Premium Member Only -484.01 -390.02 -244.21 -76.60 -40.04

Premium Exploration Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 -46.24 -66.71 -66.66 -28.45 -94.26

Premium Exploration ROC % Calculation

Premium Exploration's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

ROC % (A: Dec. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2012 ) + Invested Capital (A: Dec. 2013 ))/ count )
=-1.337 * ( 1 - 0% )/( (3.742 + 2.936)/ 2 )
=-1.337/3.339
=-40.04 %

where

Invested Capital(A: Dec. 2012 )
=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))
=3.78 - 0.526 - ( 0.166 - max(0, 0.855 - 0.367+0.166))
=3.742

Invested Capital(A: Dec. 2013 )
=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))
=3.246 - 0.654 - ( 0.477 - max(0, 0.934 - 0.59+0.477))
=2.936

Premium Exploration's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2014 is calculated as:

ROC % (Q: Sep. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2014 ) + Invested Capital (Q: Sep. 2014 ))/ count )
=-2.396 * ( 1 - 0% )/( (2.518 + 2.566)/ 2 )
=-2.396/2.542
=-94.26 %

where

Invested Capital(Q: Jun. 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))
=2.595 - 0.697 - ( 0.031 - max(0, 1.013 - 0.393+0.031))
=2.518

Invested Capital(Q: Sep. 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))
=2.419 - 1.105 - ( 0.002 - max(0, 1.508 - 0.256+0.002))
=2.566

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) 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 -94.26% mean?
Premium Exploration (PMMEF) has a ROC % of -94.26% as of Sep. 2014. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Premium Exploration and its competitors.
Is Premium Exploration's ROC % too high?
Premium Exploration's current ROC % is -94.26%.
How does Premium Exploration's ROC % compare to competitors?
Premium Exploration's ROC % of -94.26% 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 Premium Exploration and its competitors. Premium Exploration's current ROC % is -94.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premium Exploration stock overvalued right now?
Premium Exploration (PMMEF) has a current ROC % of -94.26%. The current ROC % is -94.26%. 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 Premium Exploration (PMMEF), the current ROC % is -94.26% as of Sep. 2014. 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.

Premium Exploration Business Description

Address 254 W. Hanley Avenue, Suite A, Coeur d\'Alene, ID, USA, 83815
Premium Exploration Inc is a mineral exploration company operating in Canada. It mainly explores and develops precious metal properties. The company owns an interest in the Idaho Gold Project, which includes Buffalo Gulch Zone, the Deadwood Zone, the Friday Zone, the Project X Zone, the Monday Zone and the Lucky Strike Zone. It also holds exploration interest in Chrome Mountain Property.