SHMIF (Showcase Minerals) ROC % : -953.85% (As of Jul. 2024)

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What is Showcase Minerals 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 %. Showcase Minerals's annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -953.85%.

As of today (2024-12-13), Showcase Minerals's WACC % is 9.14%. Showcase Minerals's ROC % is -344.80% (calculated using TTM income statement data). Showcase Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Showcase Minerals ROC % Historical Data

The historical data trend for Showcase Minerals'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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Showcase Minerals ROC % Chart

Showcase Minerals Annual Data

Trend

Oct21

Oct22

Oct23

ROC %

-139.68

-177.44

-88.08

Showcase Minerals Quarterly Data
	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
ROC %	Get a 7-Day Free Trial							-145.17	-94.54	-176.05	-154.46	-953.85

Showcase Minerals ROC % Calculation

Showcase Minerals's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2023 is calculated as:

	ROC % (A: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2022 )	+	Invested Capital (A: Oct. 2023 ))	/ count )
=	-0.325 * ( 1 - 0% )	/	( (0.07	+	0.668)	/ 2 )
=	-0.325	/	0.369
=	-88.08 %

where

	Invested Capital		(A: Oct. 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	))
=	0.215	-	0.015	-	( 0.145	-	max(0, 0.015	-	0.145	+	0.145	))
=	0.07

	Invested Capital		(A: Oct. 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	))
=	0.75	-	0.008	-	( 0.074	-	max(0, 0.023	-	0.619	+	0.074	))
=	0.668

Showcase Minerals'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: Apr. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-3.348 * ( 1 - 0% )	/	( (0.594	+	0.108)	/ 2 )
=	-3.348	/	0.351
=	-953.85 %

where

	Invested Capital		(Q: Apr. 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	))
=	0.987	-	0.062	-	( 0.331	-	max(0, 0.062	-	0.412	+	0.331	))
=	0.594

	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	))
=	0.339	-	0.156	-	( 0.206	-	max(0, 0.171	-	0.246	+	0.206	))
=	0.108

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

Showcase Minerals (OTCPK:SHMIF) 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, Showcase Minerals's WACC % is 9.14%. Showcase Minerals's ROC % is -344.80% (calculated using TTM income statement data). Showcase Minerals 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.

Showcase Minerals ROC % Related Terms

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Showcase Minerals Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Showcase Minerals Inc (OTCPK:SHMIF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

ZJ0:Germany SHOW:Canada

Address

741 Harbourfront Drive North East, Salmon Arm, BC, CAN, V1E 3L4

Website

Showcase Minerals Inc is engaged in the business of mineral property exploration and development. The company holds the exclusive option to acquire a 100% interest in the Dixie Flats Claims, the North Star Claims, and the Woodruff Claims (collectively, 'the Properties'), which are respectively subject to net smelters returns royalties ranging from 2.25% to 4.25%. It has one reportable segment, the exploration and development of mineral property in the State of Nevada, USA.

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