Fredonia Mining (TSXV:FRED) ROC % : -21,714.29% (As of Jun. 2024)

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What is Fredonia Mining 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 %. Fredonia Mining's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -21,714.29%.

As of today (2024-12-12), Fredonia Mining's WACC % is 0.01%. Fredonia Mining's ROC % is -95.00% (calculated using TTM income statement data). Fredonia Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fredonia Mining ROC % Historical Data

The historical data trend for Fredonia Mining'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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Fredonia Mining ROC % Chart

Fredonia Mining Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

ROC %

-8.61

-453.57

-53,138.46

-75,114.29

Fredonia Mining Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial												-24.14	-61.07	-28,514.29	-22,057.14	-21,714.29

Fredonia Mining ROC % Calculation

Fredonia Mining's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-5.258 * ( 1 - 0% )	/	( (0.0070000000000001	+	0.007)	/ 2 )
=	-5.258	/	0.0070000000000001
=	-75,114.29 %

where

	Invested Capital		(A: Sep. 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	))
=	3.71	-	0.606	-	( 3.512	-	max(0, 0.606	-	3.703	+	3.512	))
=	0.0070000000000001

	Invested Capital		(A: Sep. 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	))
=	0.574	-	0.774	-	( 0.356	-	max(0, 0.774	-	0.567	+	0.356	))
=	0.007

Fredonia Mining's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-1.52 * ( 1 - 0% )	/	( (0.007	+	0.007)	/ 2 )
=	-1.52	/	0.007
=	-21,714.29 %

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	))
=	0.964	-	1.068	-	( 0.727	-	max(0, 1.068	-	0.957	+	0.727	))
=	0.007

	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	))
=	0.792	-	1.222	-	( 0.548	-	max(0, 1.222	-	0.785	+	0.548	))
=	0.007

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

Fredonia Mining (TSXV:FRED) 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, Fredonia Mining's WACC % is 0.01%. Fredonia Mining's ROC % is -95.00% (calculated using TTM income statement data). Fredonia Mining 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.

Fredonia Mining ROC % Related Terms

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Fredonia Mining Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Fredonia Mining Inc (TSXV:FRED) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

82 Richmond Street, East, Toronto, ON, CAN, M5C 1P1

Website

https://www.fredoniamanagement.com

Fredonia Mining Inc is engaged in the exploration of precious metals in Argentina. Fredonia holds licenses over three areas in the Deseado including the flagship El Dorado Monserrat Project, EDM, as well as El Aguila, and Hornia. Fredonia has undertaken exploration drill programs on EDM and El Aguila with encouraging results. Hornia is an underexplored area but historic drilling indicates the realistic potential for further discoveries. El Aguila is interpreted as a failed caldera with gold mineralization encountered in the radial as well as ring structures.

Executives

Resource Capital Fund Vi L.p.	10% Security Holder
Estanislao Ricardo Auriemma	Director, Senior Officer

Fredonia Mining Headlines

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