ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tower Resources's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was -10.82%.
As of today (2026-06-28), Tower Resources's WACC % is 6.93%. Tower Resources's ROC % is -9.60% (calculated using TTM income statement data).
Tower Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tower Resources (TSXV:TWR) 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, Tower Resources's WACC % is 6.93%. Tower Resources's ROC % is -9.60% (calculated using TTM income statement data).
Tower 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.
Tower Resources ROC % Related Terms
Tower Resources ROC % Historical Data
* Premium members only.
The historical data trend for Tower 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.
Note:
The Operating Income data used here is four times the quarterly (Jan. 2026) 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.
Tower Resources (TSXV:TWR) has a ROC % of -10.82% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tower Resources and its competitors.
Is Tower Resources' ROC % too high?
Tower Resources' current ROC % is -10.82%. Overall, Tower Resources has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Tower Resources' ROC % compare to NEM and AU?
Tower Resources' ROC % of -10.82% 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 Tower Resources and its competitors. Tower Resources's current ROC % is -10.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower Resources stock overvalued right now?
Tower Resources (TSXV:TWR) has a current ROC % of -10.82%. The current ROC % is -10.82%. Tower Resources' overall GF Score™ is 37/100 with 2 warning signs to review. 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 Tower Resources (TSXV:TWR), the current ROC % is -10.82% as of Jan. 2026. 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.
Tower Resources Ltd is a mineral exploration company engaged in the acquisition and exploration of mineral assets. The company's key exploration assets are the Rabbit North copper-gold porphyry project located between the New Afton and Highland Valley Copper mines, the Nechako Gold project near Artemis' Blackwater project, and the More Creek gold project in the Golden Triangle area. These assets are located in British Columbia, Canada. Tower Resources' current exploration focus is for gold and porphyry copper-gold deposits at Rabbit North and gold deposits at More Creek.
37GF Score
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