Centenario Gold (TSXV:CTG) ROC % : -189.90% (As of Sep. 2024)

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What is Centenario Gold 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 %. Centenario Gold's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -189.90%.

As of today (2025-03-24), Centenario Gold's WACC % is 9.29%. Centenario Gold's ROC % is -416.29% (calculated using TTM income statement data). Centenario Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Centenario Gold ROC % Historical Data

The historical data trend for Centenario Gold'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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Centenario Gold ROC % Chart

Centenario Gold Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-581.17

-394.08

-298.09

Centenario Gold Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial										-208.75	-772.78	-320.24	-198.17	-189.90

Centenario Gold ROC % Calculation

Centenario Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-1.48 * ( 1 - 0% )	/	( (0.222	+	0.771)	/ 2 )
=	-1.48	/	0.4965
=	-298.09 %

where

	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	))
=	0.336	-	0.379	-	( 0.115	-	max(0, 0.387	-	0.122	+	0.115	))
=	0.222

	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	))
=	1.209	-	0.03	-	( 0.408	-	max(0, 0.03	-	0.971	+	0.408	))
=	0.771

Centenario Gold'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: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.696 * ( 1 - 0% )	/	( (0.433	+	0.3)	/ 2 )
=	-0.696	/	0.3665
=	-189.90 %

where

	Invested Capital		(Q: Jun. 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	))
=	0.487	-	0.029	-	( 0.025	-	max(0, 0.029	-	0.184	+	0.025	))
=	0.433

	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	))
=	0.344	-	0.069	-	( 0.005	-	max(0, 0.069	-	0.044	+	0.005	))
=	0.3

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

Centenario Gold (TSXV:CTG) 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, Centenario Gold's WACC % is 9.29%. Centenario Gold's ROC % is -416.29% (calculated using TTM income statement data). Centenario Gold 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.

Centenario Gold ROC % Related Terms

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Centenario Gold Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

800 West Pender Street, Suite 615, Vancouver, BC, CAN, V6C 2V6

Website

https://www.centenariogold.com

Centenario Gold Corp is engaged in acquiring, exploring, and developing interests in mineral projects in Mexico. The company's project include The EDEN Project. The EDEN Project forms part of the historical Guadalupe los Reyes Mining District near Cosala, in southeast Sinaloa State, Mexico, The Property sits just north of Prime Mining Corp's Los Reyes gold-silver project and includes 2 adjoining mineral claims called El Eden and El Eden 1 which total 2,489 hectares.