RBMNF (Rugby Resources) ROC % : -225.66% (As of Nov. 2024)

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What is Rugby Resources 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 %. Rugby Resources's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -225.66%.

As of today (2025-03-15), Rugby Resources's WACC % is 17.23%. Rugby Resources's ROC % is -621.59% (calculated using TTM income statement data). Rugby Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rugby Resources ROC % Historical Data

The historical data trend for Rugby 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.

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Rugby Resources ROC % Chart

Rugby Resources Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROC %

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-3,394.00

-1,039.02

-69.50

-147.22

-2,067.74

Rugby Resources Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROC %	Get a 7-Day Free Trial															-1,373.01	-1,914.17	-2,358.44	-1,677.22	-225.66

Rugby Resources ROC % Calculation

Rugby Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2024 is calculated as:

	ROC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	-2.564 * ( 1 - 0% )	/	( (0.144	+	0.104)	/ 2 )
=	-2.564	/	0.124
=	-2,067.74 %

where

	Invested Capital		(A: Feb. 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	))
=	0.33	-	0.308	-	( 0.183	-	max(0, 0.337	-	0.215	+	0.183	))
=	0.144

	Invested Capital		(A: Feb. 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	))
=	0.93	-	0.173	-	( 0.771	-	max(0, 0.173	-	0.826	+	0.771	))
=	0.104

Rugby Resources's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

	ROC % (Q: Nov. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2024 )	+	Invested Capital (Q: Nov. 2024 ))	/ count )
=	-1.548 * ( 1 - 0% )	/	( (0.132	+	1.24)	/ 2 )
=	-1.548	/	0.686
=	-225.66 %

where

	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	))
=	0.464	-	0.231	-	( 0.296	-	max(0, 0.231	-	0.332	+	0.296	))
=	0.132

	Invested Capital		(Q: Nov. 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	))
=	1.149	-	0.199	-	( 0.974	-	max(0, 1.304	-	1.014	+	0.974	))
=	1.24

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

Rugby Resources (OTCPK:RBMNF) 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, Rugby Resources's WACC % is 17.23%. Rugby Resources's ROC % is -621.59% (calculated using TTM income statement data). Rugby 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.

Rugby Resources ROC % Related Terms

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Rugby Resources Business Description

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RUG:Canada

Address

1075 West Georgia Street, Suite 1890, Vancouver, BC, CAN, V6C 1H2

Website

https://www.rugbyresourcesltd.com

Rugby Resources Ltd is an exploration-stage company. The company with its subsidiaries is engaged in the acquisition, exploration, and development of mineral properties located in Australia, Colombia, and the Philippines. Its activities are all in the one industry segment of mineral property acquisition, exploration, and development. Some of the projects of the company are Cobrasco Copper-Molybdenum Project, Mantau Copper Gold Project, El Zanjon Project, Motherlode Copper Gold - Philippines, Venidero Gold Silver - Argentina, and Georgetown Copper-Gold Project.