Commander Resources (TSXV:CMD) ROC % : -1,939.32% (As of Sep. 2024)

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What is Commander 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 %. Commander Resources's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -1,939.32%.

As of today (2024-12-11), Commander Resources's WACC % is 14.97%. Commander Resources's ROC % is -392.61% (calculated using TTM income statement data). Commander Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Commander Resources ROC % Historical Data

The historical data trend for Commander 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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Commander Resources ROC % Chart

Commander Resources Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-145.41

-336.91

-344.53

-330.54

-232.71

Commander Resources Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-183.29	-157.16	-602.78	-138.26	-1,939.32

Commander Resources ROC % Calculation

Commander Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-0.875 * ( 1 - 0% )	/	( (0.341	+	0.411)	/ 2 )
=	-0.875	/	0.376
=	-232.71 %

where

	Invested Capital		(A: Dec. 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	))
=	2.023	-	0.034	-	( 1.666	-	max(0, 0.165	-	1.813	+	1.666	))
=	0.341

	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	))
=	0.975	-	0.133	-	( 0.524	-	max(0, 0.316	-	0.747	+	0.524	))
=	0.411

Commander Resources'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: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-6.264 * ( 1 - 0% )	/	( (0.484	+	0.162)	/ 2 )
=	-6.264	/	0.323
=	-1,939.32 %

where

	Invested Capital		(Q: Mar. 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	))
=	0.638	-	0.219	-	( 0.392	-	max(0, 0.524	-	0.459	+	0.392	))
=	0.484

	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	))
=	4.526	-	0.485	-	( 4.268	-	max(0, 0.485	-	4.364	+	4.268	))
=	0.162

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

Commander Resources (TSXV:CMD) 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, Commander Resources's WACC % is 14.97%. Commander Resources's ROC % is -392.61% (calculated using TTM income statement data). Commander 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.

Commander Resources ROC % Related Terms

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Commander Resources Business Description

Industry

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CMDRF:USA

Address

1111 Melville Street, Suite 1100, 11th Floor, Vancouver, BC, CAN, V6E 3V6

Website

https://www.commanderresources.com

Commander Resources Ltd is an exploration stage company. The business activity of the group involves the acquisition and exploration of mineral properties in Canada and Mexico. It is engaged in employing new techniques in the search for precious and base metals. The company holds an interest in projects such as October Dome, Mt. Polley, Rebel, Flume, South Voisey's bay, and Pedro among others.

Executives