SRCH (Searchlight Minerals) ROC %: -3.43% (As of Sep. 2016)

What is Searchlight Minerals ROC %?

Searchlight Minerals SRCH ROC % is -3.43% as of Sep. 2016.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Searchlight Minerals's annualized return on capital (ROC %) for the quarter that ended in Sep. 2016 was -3.43%.

As of today (2026-06-25), Searchlight Minerals's WACC % is 0.00%. Searchlight Minerals's ROC % is 0.00% (calculated using TTM income statement data). Searchlight Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Searchlight Minerals (OTCPK:SRCH) 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, Searchlight Minerals's WACC % is 0.00%. Searchlight Minerals's ROC % is 0.00% (calculated using TTM income statement data). Searchlight 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.

Searchlight Minerals ROC % Related Terms

Searchlight Minerals ROC % Historical Data

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The historical data trend for Searchlight 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.

Searchlight Minerals ROC % Chart

Searchlight Minerals Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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-2.47

-3.28

-2.67

-4.09

-4.62

Searchlight Minerals Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
ROC %	Get a 7-Day Free Trial															-4.98	-5.39	-3.40	-4.16	-3.43

Searchlight Minerals ROC % Calculation

Searchlight Minerals's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-6.445 * ( 1 - 0% )	/	( (137.903	+	141.091)	/ 2 )
=	-6.445	/	139.497
=	-4.62 %

where

	Invested Capital		(A: Dec. 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	))
=	138.387	-	0.831	-	( 0.585	-	max(0, 1.235	-	0.888	+	0.585	))
=	137.903

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	136.644	-	1.065	-	( 0.454	-	max(0, 6.126	-	0.614	+	0.454	))
=	141.091

Searchlight Minerals's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2016 is calculated as:

	ROC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	-4.692 * ( 1 - 0% )	/	( (136.751	+	136.566)	/ 2 )
=	-4.692	/	136.6585
=	-3.43 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	136.872	-	1.042	-	( 1.568	-	max(0, 2.551	-	1.63	+	1.568	))
=	136.751

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	135.943	-	1.181	-	( 0.968	-	max(0, 2.787	-	0.983	+	0.968	))
=	136.566

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -3.43% mean?

Searchlight Minerals (SRCH) has a ROC % of -3.43% as of Sep. 2016. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Searchlight Minerals and its competitors.

Is Searchlight Minerals' ROC % too high?

Searchlight Minerals' current ROC % is -3.43%.

How does Searchlight Minerals' ROC % compare to WWR?

Searchlight Minerals' ROC % of -3.43% 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 Searchlight Minerals and its competitors. Searchlight Minerals's current ROC % is -3.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Searchlight Minerals stock overvalued right now?

Searchlight Minerals (SRCH) has a current ROC % of -3.43%. The current ROC % is -3.43%. 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 Searchlight Minerals (SRCH), the current ROC % is -3.43% as of Sep. 2016. 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.

Searchlight Minerals Business Description

Industry Basic Materials Metals & Mining

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Address 7582 Hawks Landing Drive, West Palm Beach, FL, USA, 33412

Website https://www.searchlightminerals.com

Searchlight Minerals Corp is an exploration stage company engaged in a slag reprocessing project and the acquisition and exploration of mineral properties. The Company is presently focused on the Clarkdale Slag Project, located in Clarkdale, Arizona, which is a reclamation project to recover precious and base metals from the reprocessing of slag produced from the smelting of copper ore mined at the United Verde Copper Mine in Jerome, Arizona.