PRRSF (Prospect Ridge Resources) ROC %: -73.27% (As of Feb. 2026)


What is Prospect Ridge Resources ROC %?

Prospect Ridge Resources PRRSF +6.87% ROC % is -73.27% as of Feb. 2026. The stock has 3 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 %. Prospect Ridge Resources's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was -73.27%.

As of today (2026-06-27), Prospect Ridge Resources's WACC % is 6.96%. Prospect Ridge Resources's ROC % is -60.77% (calculated using TTM income statement data). Prospect Ridge Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Prospect Ridge Resources  (OTCPK:PRRSF) 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, Prospect Ridge Resources's WACC % is 6.96%. Prospect Ridge Resources's ROC % is -60.77% (calculated using TTM income statement data). Prospect Ridge 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.

Prospect Ridge Resources ROC % Related Terms

Prospect Ridge Resources ROC % Historical Data

* Premium members only.

The historical data trend for Prospect Ridge 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.

Prospect Ridge Resources ROC % Chart

Prospect Ridge Resources Annual Data
Trend Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROC %
Get a 7-Day Free Trial -461.16 -135.27 -41.92 -49.74 -41.23

Prospect Ridge Resources Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
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 -34.75 -25.05 -35.87 -105.64 -73.27

Prospect Ridge Resources ROC % Calculation

Prospect Ridge Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2025 is calculated as:

ROC % (A: Aug. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2024 ) + Invested Capital (A: Aug. 2025 ))/ count )
=-1.534 * ( 1 - 0% )/( (3.788 + 3.654)/ 2 )
=-1.534/3.721
=-41.23 %

where

Invested Capital(A: 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))
=7.475 - 0.698 - ( 3.098 - max(0, 0.753 - 3.742+3.098))
=3.788

Invested Capital(A: Aug. 2025 )
=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))
=5.385 - 0.244 - ( 1.679 - max(0, 0.278 - 1.765+1.679))
=3.654

Prospect Ridge Resources's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=-2.8 * ( 1 - 0% )/( (3.949 + 3.694)/ 2 )
=-2.8/3.8215
=-73.27 %

where

Invested Capital(Q: Nov. 2025 )
=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))
=5.373 - 0.221 - ( 1.203 - max(0, 0.255 - 1.804+1.203))
=3.949

Invested Capital(Q: Feb. 2026 )
=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))
=5.378 - 0.18 - ( 1.641 - max(0, 0.217 - 1.721+1.641))
=3.694

Note: The Operating Income data used here is four times the quarterly (Feb. 2026) 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 -73.27% mean?
Prospect Ridge Resources (PRRSF) has a ROC % of -73.27% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Prospect Ridge Resources and its competitors.
Is Prospect Ridge Resources' ROC % too high?
Prospect Ridge Resources' current ROC % is -73.27%.
How does Prospect Ridge Resources' ROC % compare to competitors?
Prospect Ridge Resources' ROC % of -73.27% 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 Prospect Ridge Resources and its competitors. Prospect Ridge Resources's current ROC % is -73.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Ridge Resources stock overvalued right now?
Prospect Ridge Resources (PRRSF) has a current ROC % of -73.27%. The current ROC % is -73.27%. 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 Prospect Ridge Resources (PRRSF), the current ROC % is -73.27% as of Feb. 2026. 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.

Prospect Ridge Resources Business Description

Other Exchanges 0ED:GermanyPRR:Canada
Address 24549 - 53rd Avenue, Langley, BC, CAN, V2Z 1H6
Prospect Ridge Resources Corp is a mineral exploration company engaged in the identification, acquisition, and exploration of mineral projects in North America. It also holds an interest in Holy Grail Property, which is located north of Terrace, BC. It started the project Knauss Creek Property, Excalibur Property, and Castle Property.