GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Onyx Gold corp (TSXV:ONYX) » Definitions » ROC %

Onyx Gold (TSXV:ONYX) ROC % : -6.75% (As of Sep. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Onyx 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 %. Onyx Gold's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -6.75%.

As of today (2024-12-14), Onyx Gold's WACC % is 9.19%. Onyx Gold's ROC % is -8.00% (calculated using TTM income statement data). Onyx Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Onyx Gold ROC % Historical Data

The historical data trend for Onyx 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.

* Premium members only.

Onyx Gold ROC % Chart

Onyx Gold Annual Data
Trend Mar23 Mar24
ROC %
- 37.97

Onyx Gold Quarterly Data
Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial -18.82 -9.94 -8.27 -7.17 -6.75

Onyx Gold ROC % Calculation

Onyx Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=-1.993 * ( 1 - 519.2% )/( (0 + 22.001)/ 1 )
=8.354656/22.001
=37.97 %

where

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

Invested Capital(A: 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))
=25.968 - 0.334 - ( 4.08 - max(0, 0.659 - 4.292+4.08))
=22.001

Onyx 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 )
=-1.596 * ( 1 - 0% )/( (23.28 + 23.993)/ 2 )
=-1.596/23.6365
=-6.75 %

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))
=25.63 - 0.186 - ( 2.451 - max(0, 0.511 - 2.675+2.451))
=23.28

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))
=25.423 - 0.106 - ( 1.629 - max(0, 0.431 - 1.755+1.629))
=23.993

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.

Onyx Gold  (TSXV:ONYX) 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, Onyx Gold's WACC % is 9.19%. Onyx Gold's ROC % is -8.00% (calculated using TTM income statement data). Onyx 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.

Onyx Gold ROC % Related Terms

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

Onyx Gold Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Onyx Gold corp (TSXV:ONYX) » Definitions » ROC %
Comparable Companies
TSXV:GXX TSXV:SIC TSXV:GFG TSXV:RDU XCNQ:HWG TSXV:JG TSXV:PUMA TSXV:FMAN TSXV:YGT XCNQ:BNN SHSE:601899 NEM TSX:ABX TSX:FNV TSX:AEM TSX:WPM MIC:PLZL ASX:NCM SHSE:600547 JSE:GFI
Traded in Other Exchanges
ONXGF:USA
Address
375 Water Street, Suite 405, Vancouver, BC, CAN, V6B 5C6
Website
https://www.onyxgold.com
Onyx Gold corp is an exploration company focused on Canadian mining jurisdictions, with assets in Timmins, Ontario, and Yukon Territory. The company's portfolio of gold projects in the greater Timmins gold camp includes the Munro-Croesus Gold property, for its mineralization, plus two additional earlier-stage large exploration properties, Golden Mile, Yukon, and Timmins South.
Executives
Darwin Green Director, Senior Officer
Brock Macaulay Colterjohn Director, Senior Officer
Conor Patrick Mckinley Senior Officer
Nicole Raymonde Hoeller Senior Officer