Arctic Star Exploration (TSXV:ADD) ROC %: -5.64% (As of Sep. 2025)


What is Arctic Star Exploration ROC %?

Arctic Star Exploration TSXV:ADD ROC % is -5.64% as of Sep. 2025. The stock has 1 warning sign investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Arctic Star Exploration's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was -5.64%.

As of today (2026-07-06), Arctic Star Exploration's WACC % is 2.84%. Arctic Star Exploration's ROC % is -6.90% (calculated using TTM income statement data). Arctic Star Exploration earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Arctic Star Exploration  (TSXV:ADD) 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, Arctic Star Exploration's WACC % is 2.84%. Arctic Star Exploration's ROC % is -6.90% (calculated using TTM income statement data). Arctic Star Exploration 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.

Arctic Star Exploration ROC % Related Terms

Arctic Star Exploration ROC % Historical Data

* Premium members only.

The historical data trend for Arctic Star Exploration'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.

Arctic Star Exploration ROC % Chart

Arctic Star Exploration Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -23.71 -39.15 -28.29 -13.05 -7.79

Arctic Star Exploration Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
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 -6.43 -8.12 -6.80 -7.07 -5.64

Arctic Star Exploration ROC % Calculation

Arctic Star Exploration's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=-0.671 * ( 1 - 0% )/( (8.582 + 8.649)/ 2 )
=-0.671/8.6155
=-7.79 %

where

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))
=8.913 - 0.713 - ( 0.028 - max(0, 0.713 - 0.331+0.028))
=8.582

Invested Capital(A: Dec. 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))
=8.76 - 1.15 - ( 0.001 - max(0, 1.15 - 0.111+0.001))
=8.649

Arctic Star Exploration's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=-0.496 * ( 1 - 0% )/( (8.775 + 8.808)/ 2 )
=-0.496/8.7915
=-5.64 %

where

Invested Capital(Q: Jun. 2025 )
=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))
=8.735 - 1.358 - ( 0.007 - max(0, 1.43 - 0.032+0.007))
=8.775

Invested Capital(Q: Sep. 2025 )
=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))
=8.743 - 1.46 - ( 0.025 - max(0, 1.564 - 0.039+0.025))
=8.808

Note: The Operating Income data used here is four times the quarterly (Sep. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -5.64% mean?
Arctic Star Exploration (TSXV:ADD) has a ROC % of -5.64% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Arctic Star Exploration and its competitors.
Is Arctic Star Exploration's ROC % too high?
Arctic Star Exploration's current ROC % is -5.64%.
How does Arctic Star Exploration's ROC % compare to MINR and AUMN?
Arctic Star Exploration's ROC % of -5.64% 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 Arctic Star Exploration and its competitors. Arctic Star Exploration's current ROC % is -5.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arctic Star Exploration stock overvalued right now?
Arctic Star Exploration (TSXV:ADD) has a current ROC % of -5.64%. The current ROC % is -5.64%. 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 Arctic Star Exploration (TSXV:ADD), the current ROC % is -5.64% as of Sep. 2025. 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.

Arctic Star Exploration Business Description

Other Exchanges ASDZF:USA
Address 1111 Melville Street, Suite 1100, 11th Floor, Vancouver, BC, CAN, V6E 3V6
Arctic Star Exploration Corp is a natural resource company engaged in the acquisition, exploration, and development of mineral properties. Some of the projects of the company are the Timantti diamond project, Diagras diamond project and others. It has one reportable operating segment which is mineral exploration It has a business presence in Canada and Finland.