South Atlantic Gold (TSXV:SAO) ROC %: -5.60% (As of Nov. 2025)


What is South Atlantic Gold ROC %?

South Atlantic Gold TSXV:SAO -11.11% ROC % is -5.60% as of Nov. 2025. The stock has 1 warning sign investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. South Atlantic Gold's annualized return on capital (ROC %) for the quarter that ended in Nov. 2025 was -5.60%.

As of today (2026-06-27), South Atlantic Gold's WACC % is 10.25%. South Atlantic Gold's ROC % is -10.29% (calculated using TTM income statement data). South Atlantic Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

South Atlantic Gold  (TSXV:SAO) 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, South Atlantic Gold's WACC % is 10.25%. South Atlantic Gold's ROC % is -10.29% (calculated using TTM income statement data). South Atlantic 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.

South Atlantic Gold ROC % Related Terms

South Atlantic Gold ROC % Historical Data

* Premium members only.

The historical data trend for South Atlantic 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.

South Atlantic Gold ROC % Chart

South Atlantic Gold Annual Data
Trend Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -31.08 -18.62 -13.93 -31.33 -10.37

South Atlantic Gold Quarterly Data
Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.27 -19.21 -8.99 -8.71 -5.60

South Atlantic Gold ROC % Calculation

South Atlantic Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2025 is calculated as:

ROC % (A: Feb. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Feb. 2024 ) + Invested Capital (A: Feb. 2025 ))/ count )
=-0.373 * ( 1 - 0% )/( (3.842 + 3.352)/ 2 )
=-0.373/3.597
=-10.37 %

where

Invested Capital(A: Feb. 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))
=4.095 - 0.466 - ( 0.235 - max(0, 0.466 - 0.253+0.235))
=3.842

Invested Capital(A: Feb. 2025 )
=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))
=3.614 - 0.243 - ( 0.226 - max(0, 0.243 - 0.262+0.226))
=3.352

South Atlantic Gold's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2025 is calculated as:

ROC % (Q: Nov. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Nov. 2025 ))/ count )
=-0.224 * ( 1 - 0% )/( (3.937 + 4.063)/ 2 )
=-0.224/4
=-5.60 %

where

Invested Capital(Q: Aug. 2025 )
=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))
=3.812 - 0.052 - ( 0.354 - max(0, 0.556 - 0.379+0.354))
=3.937

Invested Capital(Q: Nov. 2025 )
=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))
=3.787 - 0.102 - ( 0.214 - max(0, 0.615 - 0.237+0.214))
=4.063

Note: The Operating Income data used here is four times the quarterly (Nov. 2025) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -5.60% mean?
South Atlantic Gold (TSXV:SAO) has a ROC % of -5.60% as of Nov. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on South Atlantic Gold and its competitors.
Is South Atlantic Gold's ROC % too high?
South Atlantic Gold's current ROC % is -5.60%.
How does South Atlantic Gold's ROC % compare to competitors?
South Atlantic Gold's ROC % of -5.60% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on South Atlantic Gold and its competitors. South Atlantic Gold's current ROC % is -5.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South Atlantic Gold stock overvalued right now?
South Atlantic Gold (TSXV:SAO) has a current ROC % of -5.60%. The current ROC % is -5.60%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For South Atlantic Gold (TSXV:SAO), the current ROC % is -5.60% as of Nov. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

South Atlantic Gold Business Description

Other Exchanges JLRRF:USA
Address 1665 Ellis Street, Suite 301, Kelowna, BC, CAN, V1Y 2B3
South Atlantic Gold Inc is engaged in the acquisition, exploration, and development of mineral properties located in Brazil and Canada. The company's current properties include the Pendra Branca Project in Brazil and the Bigg Kidd project currently under the option and located in British Columbia.