Canter Resources (XCNQ:CRC) ROC % : -22.12% (As of Dec. 2023)

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What is Canter 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 %. Canter Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -22.12%.

As of today (2024-06-05), Canter Resources's WACC % is 9.70%. Canter Resources's ROC % is -17.30% (calculated using TTM income statement data). Canter Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Canter Resources ROC % Historical Data

The historical data trend for Canter 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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Canter Resources ROC % Chart

Canter Resources Annual Data

Trend

Jun21

Jun22

Jun23

ROC %

-290.00

-191.86

-122.61

Canter Resources Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial								-105.84	-266.67	-444.44	-405.33	-22.12

Canter Resources ROC % Calculation

Canter Resources'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 )
=	-0.122 * ( 1 - 0% )	/	( (0.162	+	0.037)	/ 2 )
=	-0.122	/	0.0995
=	-122.61 %

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	))
=	0.392	-	0.061	-	( 0.22	-	max(0, 0.061	-	0.23	+	0.22	))
=	0.162

	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	))
=	0.06	-	0.039	-	( 0.004	-	max(0, 0.039	-	0.023	+	0.004	))
=	0.037

Canter Resources'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 )
=	-1.656 * ( 1 - 0% )	/	( (0.038	+	14.936)	/ 2 )
=	-1.656	/	7.487
=	-22.12 %

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	))
=	1.275	-	0.065	-	( 1.236	-	max(0, 0.065	-	1.237	+	1.236	))
=	0.038

	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	))
=	18.877	-	0.71	-	( 3.772	-	max(0, 0.71	-	3.941	+	3.772	))
=	14.936

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

Canter Resources (XCNQ:CRC) 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, Canter Resources's WACC % is 9.70%. Canter Resources's ROC % is -17.30% (calculated using TTM income statement data). Canter 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.

Canter Resources ROC % Related Terms

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Canter Resources (XCNQ:CRC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Canter Resources Corp (XCNQ:CRC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

CNRCF:USA 6O1:Germany

Address

918-1030 West Georgia Street, Vancouver, BC, CAN, V6E 2Y3

Website

https://www.canterresources.com

Canter Resources Corp's principal includes the exploration and development of base and precious mineral resources in British Columbia. The company's project includes the Columbus lithium-boron project. Puzzle Lake Gold Project, Santoy-Seabee mine complex in Saskatchewan, Canada and the Beaver Creek Property.

Executives

Joness Lang

Director, Senior Officer