GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » International Prospect Ventures Ltd (TSXV:IZZ) » Definitions » ROC %

International Prospect Ventures (TSXV:IZZ) ROC % : -173.33% (As of Sep. 2024)


View and export this data going back to 2011. Start your Free Trial

What is International Prospect Ventures 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 %. International Prospect Ventures's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -173.33%.

As of today (2024-12-11), International Prospect Ventures's WACC % is 8.89%. International Prospect Ventures's ROC % is 19.35% (calculated using TTM income statement data). International Prospect Ventures generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


International Prospect Ventures ROC % Historical Data

The historical data trend for International Prospect Ventures'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.

* Premium members only.

International Prospect Ventures ROC % Chart

International Prospect Ventures Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -67.69 -61.29 -159.62 -623.93 7.50

International Prospect Ventures Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -124.25 374.74 -123.61 -141.67 -173.33

International Prospect Ventures ROC % Calculation

International Prospect Ventures'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 )
=0.018 * ( 1 - 0% )/( (0 + 0.24)/ 1 )
=0.018/0.24
=7.50 %

where

International Prospect Ventures'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 )
=-0.416 * ( 1 - 0% )/( (0.24 + 0.24)/ 2 )
=-0.416/0.24
=-173.33 %

where

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

* 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.


International Prospect Ventures  (TSXV:IZZ) 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, International Prospect Ventures's WACC % is 8.89%. International Prospect Ventures's ROC % is 19.35% (calculated using TTM income statement data). International Prospect Ventures generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


International Prospect Ventures ROC % Related Terms

Thank you for viewing the detailed overview of International Prospect Ventures's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


International Prospect Ventures Business Description

Traded in Other Exchanges
Address
152 chemin de la Mine Ecole, Val-d’Or, QC, CAN, J9P 7B6
International Prospect Ventures Ltd is involved in the process of exploring, evaluating and promoting its mineral properties and other projects. The company's exploration and evaluation assets are located in Canada and Australia. Its projects are Beartooth Island Uranium Project; Pilbara Region Western Australi; West Stewardson Uranium Project Athabasca Basin, Saskatchewan; Otish/Mistassini Project North Central Québec; Elliot Lake Uranium Project Ontario, Canada and Porcupine Miracle Project Langmuir Township, Ontario.
Executives
Jason Libenson Director
Martin Walter Director, Senior Officer
Laurence Scott Jobin-bevans Director, Senior Officer
Lexam Vg Gold Inc. 10% Security Holder
Joseph Groia Director or Senior Officer of 10% Security Holder

International Prospect Ventures Headlines

No Headlines