AJN Resources (XCNQ:AJN) ROC % : -223.28% (As of Jul. 2024)

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What is AJN Resources 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 %. AJN Resources's annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -223.28%.

As of today (2024-12-12), AJN Resources's WACC % is 4.24%. AJN Resources's ROC % is -206.46% (calculated using TTM income statement data). AJN Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AJN Resources ROC % Historical Data

The historical data trend for AJN 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.

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AJN Resources ROC % Chart

AJN Resources Annual Data

Trend

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROC %

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-975.14

-398.65

-170.72

-90.81

-225.18

AJN Resources Quarterly Data
	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24
ROC %	Get a 7-Day Free Trial															-90.00	-115.43	-295.99	-164.92	-223.28

AJN Resources ROC % Calculation

AJN Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	-4.087 * ( 1 - 0% )	/	( (1.656	+	1.974)	/ 2 )
=	-4.087	/	1.815
=	-225.18 %

where

	Invested Capital		(A: Jul. 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	))
=	1.758	-	0.556	-	( 1.172	-	max(0, 1.812	-	1.358	+	1.172	))
=	1.656

	Invested Capital		(A: Jul. 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	))
=	0.948	-	0.569	-	( 0.32	-	max(0, 1.975	-	0.38	+	0.32	))
=	1.974

AJN Resources's annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2024 is calculated as:

	ROC % (Q: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-4.44 * ( 1 - 0% )	/	( (2.003	+	1.974)	/ 2 )
=	-4.44	/	1.9885
=	-223.28 %

where

	Invested Capital		(Q: Apr. 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	))
=	1.3	-	0.071	-	( 0.292	-	max(0, 1.327	-	0.553	+	0.292	))
=	2.003

	Invested Capital		(Q: Jul. 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	))
=	0.948	-	0.569	-	( 0.32	-	max(0, 1.975	-	0.38	+	0.32	))
=	1.974

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

AJN Resources (XCNQ:AJN) 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, AJN Resources's WACC % is 4.24%. AJN Resources's ROC % is -206.46% (calculated using TTM income statement data). AJN 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.

AJN Resources ROC % Related Terms

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AJN Resources Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » AJN Resources Inc (XCNQ:AJN) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

5AT:Germany

Address

1199 West Hastings Street, Suite 1400, Vancouver, BC, CAN, V6E 3T5

Website

https://www.ajnresources.com

AJN Resources Inc is an exploration and development company in Canada. It is engaged in the acquisition and exploration of mineral properties. The company's mineral properties comprise the Salt Wells Lithium Property located in Nevada, USA, and potential exploration permits in the Kabunda South Project and the Manono Northeast Project located in the Manono Territory, Tanganyika Province of the Democratic Republic of the Congo. Its reportable segments are the United States exploration segment and the DRC exploration segment.

Executives

Klaus Peter Eckhof	Director, Senior Officer
Mark Richard Gasson	10% Security Holder, Director, Senior Officer

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