Commerce Resources (TSXV:CCE) ROC % : -5.56% (As of Oct. 2024)

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What is Commerce Resources 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 %. Commerce Resources's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was -5.56%.

As of today (2025-03-24), Commerce Resources's WACC % is 13.18%. Commerce Resources's ROC % is -2.83% (calculated using TTM income statement data). Commerce Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Commerce Resources ROC % Historical Data

The historical data trend for Commerce Resources'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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Commerce Resources ROC % Chart

Commerce Resources Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

ROC %

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-1.34

-0.46

-1.86

-2.92

Commerce Resources 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															-2.17	-1.63	-2.03	-2.93	-5.56

Commerce Resources ROC % Calculation

Commerce Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2024 is calculated as:

	ROC % (A: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2023 )	+	Invested Capital (A: Oct. 2024 ))	/ count )
=	-1.808 * ( 1 - 0% )	/	( (72.864	+	50.847)	/ 2 )
=	-1.808	/	61.8555
=	-2.92 %

where

	Invested Capital		(A: Oct. 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	))
=	77.288	-	0.449	-	( 3.984	-	max(0, 0.476	-	4.451	+	3.984	))
=	72.864

	Invested Capital		(A: Oct. 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	))
=	54.741	-	1.494	-	( 2.813	-	max(0, 1.582	-	3.982	+	2.813	))
=	50.847

Commerce Resources'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 )
=	-2.756 * ( 1 - 0% )	/	( (48.293	+	50.847)	/ 2 )
=	-2.756	/	49.57
=	-5.56 %

where

	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	))
=	55.997	-	2.423	-	( 7.223	-	max(0, 3.473	-	8.754	+	7.223	))
=	48.293

	Invested Capital		(Q: Oct. 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	))
=	54.741	-	1.494	-	( 2.813	-	max(0, 1.582	-	3.982	+	2.813	))
=	50.847

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

Commerce Resources (TSXV:CCE) 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, Commerce Resources's WACC % is 13.18%. Commerce Resources's ROC % is -2.83% (calculated using TTM income statement data). Commerce Resources 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.

Commerce Resources ROC % Related Terms

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Commerce Resources Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Commerce Resources Corp (TSXV:CCE) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

CMRZF:USA D7H0:Germany D7H0:Germany

Address

789 West Pender, Suite 1450, Vancouver, BC, CAN, V6C 1H2

Website

https://www.commerceresources.com

Commerce Resources Corp is a junior mineral resource company focused on developing the Ashram Rare Earth and Fluorspar Deposit located within their Eldor Property in northern Quebec, Canada. The Ashram Deposit is characterized by simple rare earth (monazite, bastnaesite, xenotime) and gangue (carbonates) mineralogy, a large tonnage resource at favorable grade, and has demonstrated the production of high-grade mineral concentrates at high recovery. The Ashram Deposit also has a fluorspar component which could be a long-term supplier to the met-spar and acid-spar markets. The Company is focused on being a long-term supplier of mixed rare earth carbonate and/or NdPr oxide to the market.

Executives

Ross Carroll	Senior Officer
Jody Dahrouge	Director
Chris Grove	Director
David Hodge	Director, Senior Officer
Zimtu Capital Corp.	10% Security Holder

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