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Mawson Finland (TSXV:MFL) ROC % : -21.58% (As of Nov. 2024)


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What is Mawson Finland 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 %. Mawson Finland's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -21.58%.

As of today (2025-03-26), Mawson Finland's WACC % is 9.25%. Mawson Finland's ROC % is -13.26% (calculated using TTM income statement data). Mawson Finland earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mawson Finland ROC % Historical Data

The historical data trend for Mawson Finland'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.

Mawson Finland ROC % Chart

Mawson Finland Annual Data
Trend May24
ROC %
-

Mawson Finland Quarterly Data
Nov23 Apr24 Aug24 Nov24
ROC % -3.52 - -25.65 -21.58

Mawson Finland ROC % Calculation

Mawson Finland's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2024 is calculated as:

ROC % (A: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: May. 2024 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(A: May. 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))
= - - ( - max(0, - +))
=

Mawson Finland's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

ROC % (Q: Nov. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2024 ) + Invested Capital (Q: Nov. 2024 ))/ count )
=-2.636 * ( 1 - 0% )/( (11.728 + 12.702)/ 2 )
=-2.636/12.215
=-21.58 %

where

Invested Capital(Q: Aug. 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))
=16.913 - 0.668 - ( 5.012 - max(0, 0.765 - 5.282+5.012))
=11.728

Invested Capital(Q: Nov. 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))
=16.08 - 0.438 - ( 3.271 - max(0, 0.538 - 3.478+3.271))
=12.702

Note: The Operating Income data used here is four times the quarterly (Nov. 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.

Mawson Finland  (TSXV:MFL) 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, Mawson Finland's WACC % is 9.25%. Mawson Finland's ROC % is -13.26% (calculated using TTM income statement data). Mawson Finland 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.

Mawson Finland ROC % Related Terms

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Mawson Finland Business Description

Industry
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Traded in Other Exchanges
PM6:Germany
Address
110 Yonge Street, Suite 1601, Toronto, ON, CAN, M5C 1T4
Website
https://www.mawsonfinland.com
Mawson Finland Ltd is a mineral exploration company. The company is engaged in exploration and development of precious and base metal properties like gold and cobalt in the lapland region in Finland. The projects of the company includes Rajapalot Gold-Cobalt Project, Rompas Vein Gold project, and other projects.