GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Global Li-Ion Graphite Corp (STU:0TD) » Definitions » ROC %

Global Li-Ion Graphite (STU:0TD) ROC % : -6.61% (As of May. 2024)


View and export this data going back to 2017. Start your Free Trial

What is Global Li-Ion Graphite 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 %. Global Li-Ion Graphite's annualized return on capital (ROC %) for the quarter that ended in May. 2024 was -6.61%.

As of today (2024-12-14), Global Li-Ion Graphite's WACC % is 9.52%. Global Li-Ion Graphite's ROC % is -8.59% (calculated using TTM income statement data). Global Li-Ion Graphite earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Global Li-Ion Graphite ROC % Historical Data

The historical data trend for Global Li-Ion Graphite'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.

Global Li-Ion Graphite ROC % Chart

Global Li-Ion Graphite Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
ROC %
Get a 7-Day Free Trial Premium Member Only -17.73 -14.55 -29.85 -16.08 -12.81

Global Li-Ion Graphite Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
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 -8.94 -11.01 -7.42 -9.38 -6.61

Global Li-Ion Graphite ROC % Calculation

Global Li-Ion Graphite's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

ROC % (A: Aug. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2022 ) + Invested Capital (A: Aug. 2023 ))/ count )
=-0.28 * ( 1 - 0% )/( (2.237 + 2.133)/ 2 )
=-0.28/2.185
=-12.81 %

where

Global Li-Ion Graphite's annualized Return on Capital (ROC %) for the quarter that ended in May. 2024 is calculated as:

ROC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2024 ) + Invested Capital (Q: May. 2024 ))/ count )
=-0.144 * ( 1 - 0% )/( (2.173 + 2.184)/ 2 )
=-0.144/2.1785
=-6.61 %

where

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

* 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.


Global Li-Ion Graphite  (STU:0TD) 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, Global Li-Ion Graphite's WACC % is 9.52%. Global Li-Ion Graphite's ROC % is -8.59% (calculated using TTM income statement data). Global Li-Ion Graphite 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.


Global Li-Ion Graphite ROC % Related Terms

Thank you for viewing the detailed overview of Global Li-Ion Graphite's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Global Li-Ion Graphite Business Description

Traded in Other Exchanges
Address
510 Burrard Street, Suite 908, Vancouver, BC, CAN, V6C 3A8
Global Li-Ion Graphite Corp is engaged in the acquisition, exploration, and development of mineral resources. It mainly focuses on the development of graphite projects with an intent to supply the rapidly growing energy storage industry. Some of the company's projects are Lac de Gras, Neuron Graphite, and Madagascar Graphite. Each Li-Ion Battery requires Graphite, Lithium, Cobalt and nickel. Geographically, it operates in Canada and Madagascar, out of which the majority of revenue is from Canada.

Global Li-Ion Graphite Headlines

No Headlines