Optimus Gold (TSXV:OTS.H) ROC % : -28.56% (As of Dec. 2024)

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What is Optimus 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 %. Optimus Gold's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -28.56%.

As of today (2025-04-11), Optimus Gold's WACC % is 13.56%. Optimus Gold's ROC % is -17.49% (calculated using TTM income statement data). Optimus Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Optimus Gold ROC % Historical Data

The historical data trend for Optimus 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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Optimus Gold ROC % Chart

Optimus Gold Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROC %

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-21.27

-31.52

-62.25

-31.56

-15.50

Optimus Gold Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															-8.09	-18.06	-10.80	-15.86	-28.56

Optimus Gold ROC % Calculation

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

	ROC % (A: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2023 )	+	Invested Capital (A: Sep. 2024 ))	/ count )
=	-0.179 * ( 1 - 0% )	/	( (1.433	+	0.876)	/ 2 )
=	-0.179	/	1.1545
=	-15.50 %

where

	Invested Capital		(A: 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	))
=	0.675	-	3.225	-	( 0.007	-	max(0, 4.029	-	0.046	+	0.007	))
=	1.433

	Invested Capital		(A: 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	))
=	0.186	-	3.415	-	( 0.088	-	max(0, 4.23	-	0.125	+	0.088	))
=	0.876

Optimus Gold's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-0.252 * ( 1 - 0% )	/	( (0.876	+	0.889)	/ 2 )
=	-0.252	/	0.8825
=	-28.56 %

where

	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	))
=	0.186	-	3.415	-	( 0.088	-	max(0, 4.23	-	0.125	+	0.088	))
=	0.876

	Invested Capital		(Q: Dec. 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	))
=	0.165	-	3.561	-	( 0.052	-	max(0, 4.376	-	0.091	+	0.052	))
=	0.889

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

Optimus Gold (TSXV:OTS.H) 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, Optimus Gold's WACC % is 13.56%. Optimus Gold's ROC % is -17.49% (calculated using TTM income statement data). Optimus 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.

Optimus Gold ROC % Related Terms

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Optimus Gold Business Description

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Address

889 West Pender Street, Suite 702, Vancouver, BC, CAN, V6C 3B2

Website

Optimus Gold Corp. is a Canada-based mineral exploration company. The Company's principal business is the acquisition, exploration and development of mineral properties with a primary focus on exploration properties demonstrating key potential for hosting large scale ore bodies. The Company has an interest in a gold/silver natural resource exploration property in British Columbia, and the Company can earn an interest in mineral properties in the Yukon Territory and Costa Rica. The Company's projects include Stump Lake Property, Halo Gold Project and Crucitas Gold Project.

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