Kingfisher Metals (STU:9700) ROC % : -8.54% (As of Sep. 2024)

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What is Kingfisher Metals 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 %. Kingfisher Metals's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -8.54%.

As of today (2025-03-14), Kingfisher Metals's WACC % is 2.62%. Kingfisher Metals's ROC % is -7.66% (calculated using TTM income statement data). Kingfisher Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kingfisher Metals ROC % Historical Data

The historical data trend for Kingfisher Metals'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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Kingfisher Metals ROC % Chart

Kingfisher Metals Annual Data

Trend

Nov19

Nov20

Dec21

Dec22

Dec23

ROC %

-43.20

-33.46

-13.21

Kingfisher Metals Quarterly Data
	Nov19	Feb20	Nov20	Feb21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial													-25.97	-22.20	-2.87	-10.87	-8.54

Kingfisher Metals ROC % Calculation

Kingfisher Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-1.12 * ( 1 - -22.78% )	/	( (9.3	+	11.524)	/ 2 )
=	-1.375136	/	10.412
=	-13.21 %

where

	Invested Capital		(A: Dec. 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	))
=	10.992	-	0.441	-	( 1.251	-	max(0, 0.441	-	1.839	+	1.251	))
=	9.3

	Invested Capital		(A: Dec. 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	))
=	12.034	-	0.356	-	( 0.154	-	max(0, 0.37	-	0.688	+	0.154	))
=	11.524

Kingfisher Metals's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.804 * ( 1 - -22.5% )	/	( (11.293	+	11.768)	/ 2 )
=	-0.9849	/	11.5305
=	-8.54 %

where

	Invested Capital		(Q: Jun. 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	))
=	12.585	-	0.294	-	( 0.998	-	max(0, 0.319	-	1.474	+	0.998	))
=	11.293

	Invested Capital		(Q: Sep. 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	))
=	12.551	-	0.281	-	( 0.502	-	max(0, 0.301	-	1.009	+	0.502	))
=	11.768

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

Kingfisher Metals (STU:9700) 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, Kingfisher Metals's WACC % is 2.62%. Kingfisher Metals's ROC % is -7.66% (calculated using TTM income statement data). Kingfisher Metals 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.

Kingfisher Metals ROC % Related Terms

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Kingfisher Metals Business Description

Industry

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Traded in Other Exchanges

KGFMF:USA KFR:Canada

Address

1710 - 1050 W. Pender Street, Vancouver, BC, CAN, V6E 3S7

Website

https://www.kingfishermetals.com

Kingfisher Metals Corp is an exploration company focused on underexplored district-scale projects in British Columbia. It has three district-scale projects that offer potential exposure to high-grade gold, copper, silver, and zinc. Its projects include the Ecstall Project, the Goldrange Project, and the Thibert Project.

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