Emperor Metals (XCNQ:AUOZ) ROC % : -54.86% (As of Oct. 2023)

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What is Emperor Metals 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 %. Emperor Metals's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was -54.86%.

As of today (2024-06-05), Emperor Metals's WACC % is 9.70%. Emperor Metals's ROC % is -62.30% (calculated using TTM income statement data). Emperor Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Emperor Metals ROC % Historical Data

The historical data trend for Emperor Metals'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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Emperor Metals ROC % Chart

Emperor Metals Annual Data

Trend

Jan21

Jan22

Jan23

ROC %

-73.27

-84.12

-65.41

Emperor Metals Quarterly Data
	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23
ROC %	Get a 7-Day Free Trial							-85.70	-116.67	-59.44	-41.31	-54.86

Emperor Metals ROC % Calculation

Emperor Metals's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2023 is calculated as:

	ROC % (A: Jan. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2022 )	+	Invested Capital (A: Jan. 2023 ))	/ count )
=	-0.888 * ( 1 - 0% )	/	( (0.653	+	2.062)	/ 2 )
=	-0.888	/	1.3575
=	-65.41 %

where

	Invested Capital		(A: Jan. 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	))
=	1.733	-	0.066	-	( 1.066	-	max(0, 0.124	-	1.138	+	1.066	))
=	0.653

	Invested Capital		(A: Jan. 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	))
=	4.559	-	0.123	-	( 2.85	-	max(0, 0.619	-	2.993	+	2.85	))
=	2.062

Emperor Metals's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	-1.76 * ( 1 - 0% )	/	( (2.698	+	3.718)	/ 2 )
=	-1.76	/	3.208
=	-54.86 %

where

	Invested Capital		(Q: 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	))
=	4.995	-	0.211	-	( 2.533	-	max(0, 0.687	-	2.773	+	2.533	))
=	2.698

	Invested Capital		(Q: Oct. 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	))
=	5.076	-	0.717	-	( 1.309	-	max(0, 0.91	-	1.551	+	1.309	))
=	3.718

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

Emperor Metals (XCNQ:AUOZ) 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, Emperor Metals's WACC % is 9.70%. Emperor Metals's ROC % is -62.30% (calculated using TTM income statement data). Emperor Metals 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.

Emperor Metals ROC % Related Terms

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Emperor Metals (XCNQ:AUOZ) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

EMAUF:USA 9NH:Germany

Address

10545 - 45 Avenue NW, 250 Southridge, Suite 300, Edmonton, AB, CAN, T6H 4M9

Website

https://www.emperormetals.com

Emperor Metals Inc is engaged in the business of mineral exploration in Ontario. It is focused on proving the potential of Pine Grove and other early-stage gold projects located near the Hemlo Gold Mine within the western portion of the prolific Wawa-Abitibi Gold Belt of Ontario, Canada.

Executives

John Florek

Director, Senior Officer

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