Volt Lithium (Volt Lithium) ROC % : -61.80% (As of Dec. 2023)

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What is Volt Lithium 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 %. Volt Lithium's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -61.80%.

As of today (2024-05-28), Volt Lithium's WACC % is 10.01%. Volt Lithium's ROC % is -81.39% (calculated using TTM income statement data). Volt Lithium earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Volt Lithium ROC % Historical Data

The historical data trend for Volt Lithium'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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Volt Lithium ROC % Chart

Volt Lithium Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-12.38

-31.40

-28.81

-77.40

-96.08

Volt Lithium Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-62.55	-107.07	-43.68	-118.06	-61.80

Volt Lithium ROC % Calculation

Volt Lithium's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-3.665 * ( 1 - 0% )	/	( (1.544	+	6.085)	/ 2 )
=	-3.665	/	3.8145
=	-96.08 %

where

	Invested Capital		(A: Jun. 2022 )
=	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	))
=	4.609	-	0.652	-	( 2.866	-	max(0, 0.652	-	3.065	+	2.866	))
=	1.544

	Invested Capital		(A: Jun. 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	))
=	7.324	-	0.58	-	( 0.676	-	max(0, 0.58	-	1.239	+	0.676	))
=	6.085

Volt Lithium's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-4.28 * ( 1 - 0% )	/	( (6.715	+	7.137)	/ 2 )
=	-4.28	/	6.926
=	-61.80 %

where

	Invested Capital		(Q: 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	))
=	10.203	-	0.119	-	( 3.369	-	max(0, 0.282	-	3.921	+	3.369	))
=	6.715

	Invested Capital		(Q: Dec. 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	))
=	9.779	-	0.196	-	( 2.446	-	max(0, 0.433	-	3.049	+	2.446	))
=	7.137

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Volt Lithium (OTCPK:VLTLF) 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, Volt Lithium's WACC % is 10.01%. Volt Lithium's ROC % is -81.39% (calculated using TTM income statement data). Volt Lithium 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.

Volt Lithium ROC % Related Terms

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Volt Lithium (Volt Lithium) Business Description

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I2D:Germany VLT:Canada

Address

639-5th Avenue SW, Suite 1925, Calgary, AB, CAN, T2P 0M9

Website

https://www.voltlithium.com

Volt Lithium Corp is a lithium development and technology company aiming to be North America's first commercial producer of lithium hydroxide and lithium carbonates from oilfield brine. The Company is developing its lithium project in the area of Rainbow Lake, in Northwest Alberta (the Rainbow Lake Lithium Project on the backbone of the mature and sophisticated Alberta oil industry that will allow the Company to catapult its development.