Lavras Gold (TSXV:LGC) ROC % : -14.35% (As of Sep. 2024)

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What is Lavras 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 %. Lavras Gold's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -14.35%.

As of today (2024-12-12), Lavras Gold's WACC % is 9.24%. Lavras Gold's ROC % is -19.97% (calculated using TTM income statement data). Lavras Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Lavras Gold ROC % Historical Data

The historical data trend for Lavras 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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Lavras Gold ROC % Chart

Lavras Gold Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

-17.10

-15.39

Lavras Gold Quarterly Data
	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial									-16.26	-13.65	-13.70	-37.30	-14.35

Lavras Gold ROC % Calculation

Lavras 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 )
=	-2.116 * ( 1 - 0% )	/	( (11.082	+	16.422)	/ 2 )
=	-2.116	/	13.752
=	-15.39 %

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	))
=	15.893	-	0.58	-	( 4.794	-	max(0, 0.638	-	4.869	+	4.794	))
=	11.082

	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	))
=	27.526	-	0.57	-	( 11.053	-	max(0, 0.619	-	11.153	+	11.053	))
=	16.422

Lavras 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 )
=	-3.048 * ( 1 - 0% )	/	( (20.285	+	22.197)	/ 2 )
=	-3.048	/	21.241
=	-14.35 %

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	))
=	26.788	-	0.841	-	( 6.422	-	max(0, 0.887	-	6.549	+	6.422	))
=	20.285

	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	))
=	26.43	-	0.995	-	( 4.2	-	max(0, 1.041	-	4.279	+	4.2	))
=	22.197

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

Lavras Gold (TSXV:LGC) 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, Lavras Gold's WACC % is 9.24%. Lavras Gold's ROC % is -19.97% (calculated using TTM income statement data). Lavras 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.

Lavras Gold ROC % Related Terms

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Lavras Gold Business Description

Industry

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Traded in Other Exchanges

LGCFF:USA

Address

82 Richmond Street East, Suite 201, Toronto, ON, CAN, M5C 1P1

Website

https://www.lavrasgold.com

Lavras Gold Corp is a exploration company engaged in the exploration and development of the Lavras do Sul gold project located in the state of Rio Grande do Sul, Brazil. The Lavras do Sul gold project is an advanced exploration stage property that is approximately 190 square km in size and comprised of more than 23 prospects centered on historic gold workings. The Company's Current projects include Butia Gold Prospect and the LDS project in Brazil.

Executives

2176423 Ontario Ltd.	10% Security Holder
Eric Sprott	10% Security Holder
Rostislav Christov Raykov	Director
Lawrence Lepard	Director
Rowland Wallace Uloth	Director, Senior Officer
Alexander David Birkett	Director
Michael Christopher Durose	Director, Senior Officer
Jonathan Victor Hill	Director
Baccarat Trade Investments Ltd.	10% Security Holder