Lode Gold Resources (TSXV:LOD) ROC % : -10.44% (As of Dec. 2023)

View and export this data going back to 1986. Start your Free Trial

What is Lode Gold 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 %. Lode Gold Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -10.44%.

As of today (2024-05-24), Lode Gold Resources's WACC % is 16.38%. Lode Gold Resources's ROC % is -5.36% (calculated using TTM income statement data). Lode Gold Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Lode Gold Resources ROC % Historical Data

The historical data trend for Lode Gold 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.

* Premium members only.

Lode Gold Resources ROC % Chart

Lode Gold Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-15.95

-36.41

-9.71

-8.39

-5.45

Lode Gold Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-12.73	-4.24	-3.10	-3.97	-10.44

Lode Gold Resources ROC % Calculation

Lode Gold Resources'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 )
=	-1.527 * ( 1 - 0% )	/	( (29.253	+	26.744)	/ 2 )
=	-1.527	/	27.9985
=	-5.45 %

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	))
=	27.048	-	2.585	-	( 1.435	-	max(0, 6.503	-	1.713	+	1.435	))
=	29.253

	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	))
=	26.509	-	1.083	-	( 0.072	-	max(0, 1.583	-	0.265	+	0.072	))
=	26.744

Lode Gold Resources's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-2.816 * ( 1 - 0% )	/	( (27.216	+	26.744)	/ 2 )
=	-2.816	/	26.98
=	-10.44 %

where

	Invested Capital		(Q: 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	))
=	26.653	-	1.533	-	( 0.432	-	max(0, 2.733	-	0.637	+	0.432	))
=	27.216

	Invested Capital		(Q: 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	))
=	26.509	-	1.083	-	( 0.072	-	max(0, 1.583	-	0.265	+	0.072	))
=	26.744

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Lode Gold Resources (TSXV:LOD) 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, Lode Gold Resources's WACC % is 16.38%. Lode Gold Resources's ROC % is -5.36% (calculated using TTM income statement data). Lode Gold 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.

Lode Gold Resources ROC % Related Terms

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

Lode Gold Resources (TSXV:LOD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lode Gold Resources Inc (TSXV:LOD) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

SBMIF:USA

Address

100 King Street West, Suite 5700, Toronto, ON, CAN, M5X 1C7

Website

https://www.stratabound.com

Lode Gold Resources Inc formerly Stratabound Minerals Corp is a mineral exploration and development company with its advanced-stage Fremont Gold Project in the Mother Lode Gold Belt of California. The Project features an NI 43-101 Mineral Resource estimate of 1.16M ounces at an average grade of 1.90 g/t Au in the Indicated plus 2.02M ounces at an average grade of 2.22 g/t Au in the Inferred Mineral Resource classifications encompassing two historic high-grade U/G gold mines. Also, Fremont hosts three other undeveloped gold occurrences across 4 km of strike along the prolific Mother Lode Gold Belt. The company is also advancing its other early-stage gold projects: Golden Culvert, YT, McIntyre Brook, NB, and Dingman, ON gold projects.

Lode Gold Resources (TSXV:LOD) Headlines

No Headlines