Blackbird Critical Metals (STU:N790) ROC % : -23.93% (As of Jul. 2024)

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What is Blackbird Critical 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 %. Blackbird Critical Metals's annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -23.93%.

As of today (2024-12-15), Blackbird Critical Metals's WACC % is 9.19%. Blackbird Critical Metals's ROC % is -6.03% (calculated using TTM income statement data). Blackbird Critical Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Blackbird Critical Metals ROC % Historical Data

The historical data trend for Blackbird Critical 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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Blackbird Critical Metals ROC % Chart

Blackbird Critical Metals Annual Data

Trend

Jan21

Jan22

ROC %

-54.17

Blackbird Critical Metals Quarterly Data
	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Jul24
ROC %	Get a 7-Day Free Trial							-47.99	-63.78	-135.77	-70.01	-23.93

Blackbird Critical Metals ROC % Calculation

Blackbird Critical Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2022 is calculated as:

	ROC % (A: Jan. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2021 )	+	Invested Capital (A: Jan. 2022 ))	/ count )
=	-0.065 * ( 1 - 0% )	/	( (0	+	0.12)	/ 1 )
=	-0.065	/	0.12
=	-54.17 %

where

	Invested Capital		(A: Jan. 2021 )
=	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	))
=	0.337	-	0.005	-	( 0.337	-	max(0, 0.005	-	0.337	+	0.337	))
=	0

	Invested Capital		(A: Jan. 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	))
=	0.439	-	0.036	-	( 0.319	-	max(0, 0.036	-	0.319	+	0.319	))
=	0.12

Blackbird Critical Metals'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: Jul. 2023 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-0.964 * ( 1 - 0% )	/	( (3.934	+	4.122)	/ 2 )
=	-0.964	/	4.028
=	-23.93 %

where

	Invested Capital		(Q: Jul. 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	))
=	7.017	-	0.06	-	( 3.023	-	max(0, 0.06	-	3.432	+	3.023	))
=	3.934

	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	))
=	5.521	-	0.048	-	( 1.351	-	max(0, 0.048	-	1.559	+	1.351	))
=	4.122

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

Blackbird Critical Metals (STU:N790) 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, Blackbird Critical Metals's WACC % is 9.19%. Blackbird Critical Metals's ROC % is -6.03% (calculated using TTM income statement data). Blackbird Critical 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.

Blackbird Critical Metals ROC % Related Terms

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Blackbird Critical Metals Business Description

Industry

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Address

2133 – 1177 West Hastings Street, Vancouver, BC, CAN, V6E 2K3

Website

https://www.blackbirdmetals.ca

Blackbird Critical Metals Corp is a mineral exploration company engaged in the identification, acquisition, evaluation, and exploration of mineral properties located in British Columbia, Quebec, and the Northwest Territories in Canada. The company owns 100% of the Tyee Critical Metals Project located in North-Eastern Quebec and has the right to acquire a 100% interest in the Muskox Lithium Pegmatite Project located within the Yellowknife Pegmatite Province in the Northwest Territories.

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