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Colonial Coal International (STU:COX) ROC % : -145.33% (As of Oct. 2024)


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What is Colonial Coal International 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 %. Colonial Coal International's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was -145.33%.

As of today (2025-03-03), Colonial Coal International's WACC % is 9.77%. Colonial Coal International's ROC % is -59.60% (calculated using TTM income statement data). Colonial Coal International earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Colonial Coal International ROC % Historical Data

The historical data trend for Colonial Coal International'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.

Colonial Coal International ROC % Chart

Colonial Coal International Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.42 -11.51 -70.56 -54.31 -38.02

Colonial Coal International Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 -63.32 -19.38 -47.04 -24.47 -145.33

Colonial Coal International ROC % Calculation

Colonial Coal International'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 )
=-3.881 * ( 1 - 0% )/( (10.188 + 10.226)/ 2 )
=-3.881/10.207
=-38.02 %

where

Colonial Coal International's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2024 is calculated as:

ROC % (Q: Oct. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2024 ) + Invested Capital (Q: Oct. 2024 ))/ count )
=-14.888 * ( 1 - 0% )/( (10.226 + 10.263)/ 2 )
=-14.888/10.2445
=-145.33 %

where

Note: The Operating Income data used here is four times the quarterly (Oct. 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.


Colonial Coal International  (STU:COX) 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, Colonial Coal International's WACC % is 9.77%. Colonial Coal International's ROC % is -59.60% (calculated using TTM income statement data). Colonial Coal International 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.


Colonial Coal International ROC % Related Terms

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Colonial Coal International Business Description

Traded in Other Exchanges
Address
595 Howe Street, Suite 200, Vancouver, BC, CAN, V6C 2T5
Colonial Coal International Corp is a pure-play metallurgical coal development company. Principally, it is engaged in the acquisition, exploration, and development of coal properties located in Canada. Its projects include the Flatbed Project and the Huguenot Project located within the Peace River Coalfield of British Columbia. The company is also pursuing the acquisition of Watson Island, located just outside of Prince Rupert, British Columbia, for the purpose of developing a seaport terminal and supporting an industrial park.

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