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Enertopia (XCNQ:ENRT) ROC % : -3,466.67% (As of Nov. 2024)


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What is Enertopia 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 %. Enertopia's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -3,466.67%.

As of today (2025-03-14), Enertopia's WACC % is 3.71%. Enertopia's ROC % is -4609.09% (calculated using TTM income statement data). Enertopia earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Enertopia ROC % Historical Data

The historical data trend for Enertopia'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.

* Premium members only.

Enertopia ROC % Chart

Enertopia Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 210.00 - -13,486.67 -11,792.86 -6,492.86

Enertopia Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9,828.57 -4,693.33 -6,186.67 -4,160.00 -3,466.67

Enertopia ROC % Calculation

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

ROC % (A: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2023 ) + Invested Capital (A: Aug. 2024 ))/ count )
=-0.909 * ( 1 - 0% )/( (0.013 + 0.015)/ 2 )
=-0.909/0.014
=-6,492.86 %

where

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

ROC % (Q: Nov. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2024 ) + Invested Capital (Q: Nov. 2024 ))/ count )
=-0.52 * ( 1 - 0% )/( (0.015 + 0.015)/ 2 )
=-0.52/0.015
=-3,466.67 %

where

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

* 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.


Enertopia  (XCNQ:ENRT) 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, Enertopia's WACC % is 3.71%. Enertopia's ROC % is -4609.09% (calculated using TTM income statement data). Enertopia 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.


Enertopia ROC % Related Terms

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Enertopia Business Description

Traded in Other Exchanges
Address
No. 7, 1873 Spall Road, Kelowna, BC, CAN, V1Y 4R2
Enertopia Corp is engaged in the acquisition, development, and exploration of natural resource properties. The company is exploring the West Tonopah Lithium Project (West Tonopah) in the Smokey Valley, Nevada, and holds intellectual property and patents in the green technology space. The company has three reportable segments: Natural Resources, Technology, and Corporate.
Executives
Robert Mcallister Director, Senior Officer

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