Southern Alliance Mining (SGX:QNS) ROC % : -4.02% (As of Jul. 2024)

View and export this data going back to 2020. Start your Free Trial

What is Southern Alliance Mining 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 %. Southern Alliance Mining's annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -4.02%.

As of today (2025-03-16), Southern Alliance Mining's WACC % is 4.73%. Southern Alliance Mining's ROC % is -7.05% (calculated using TTM income statement data). Southern Alliance Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Southern Alliance Mining ROC % Historical Data

The historical data trend for Southern Alliance Mining'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 members only.

Southern Alliance Mining ROC % Chart

Southern Alliance Mining Annual Data

Trend

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROC %

Get a 7-Day Free Trial

54.48

154.30

8.55

-6.15

-6.92

Southern Alliance Mining Semi-Annual Data
	Jul17	Jul18	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24
ROC %	Get a 7-Day Free Trial								-7.99	-8.56	4.83	-12.39	-4.02

Southern Alliance Mining ROC % Calculation

Southern Alliance Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	-2.517 * ( 1 - -78.28% )	/	( (62.674	+	66.993)	/ 2 )
=	-4.4873076	/	64.8335
=	-6.92 %

where

	Invested Capital		(A: Jul. 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	))
=	110.866	-	2.797	-	( 45.395	-	max(0, 6.789	-	73.106	+	45.395	))
=	62.674

	Invested Capital		(A: Jul. 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	))
=	111.118	-	3.351	-	( 40.774	-	max(0, 8.063	-	63.642	+	40.774	))
=	66.993

Southern Alliance Mining's annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2024 is calculated as:

	ROC % (Q: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-1.534 * ( 1 - -66.37% )	/	( (60.04	+	66.993)	/ 2 )
=	-2.5521158	/	63.5165
=	-4.02 %

where

	Invested Capital		(Q: Jan. 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	))
=	108.86	-	5.682	-	( 43.138	-	max(0, 7.638	-	73.285	+	43.138	))
=	60.04

	Invested Capital		(Q: Jul. 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	))
=	111.118	-	3.351	-	( 40.774	-	max(0, 8.063	-	63.642	+	40.774	))
=	66.993

Note: The Operating Income data used here is two times the semi-annual (Jul. 2024) data.

Southern Alliance Mining (SGX:QNS) 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, Southern Alliance Mining's WACC % is 4.73%. Southern Alliance Mining's ROC % is -7.05% (calculated using TTM income statement data). Southern Alliance Mining 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.

Southern Alliance Mining ROC % Related Terms

Thank you for viewing the detailed overview of Southern Alliance Mining's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Southern Alliance Mining Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Southern Alliance Mining Ltd (SGX:QNS) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan Putra Square 6, Level 8, Menara Zenith, Putra Square, Kuantan, PHG, MYS, 25200

Website

https://www.southernalliancemining.com

Southern Alliance Mining Ltd is engaged in the exploration, mining, and processing of iron ore for subsequent sale. The principal activities of the Company are those of investment holding and provision of management services. The company mines, produces, and sells iron ore which includes processed iron ore concentrate typically sold to steel mills or traders; and crushed iron ore that is used as a pipe coating material. It mines at the Chaah mine an open pit mine located at the southwest of the township of Chaah.

Southern Alliance Mining Headlines

No Headlines