Great Republic Mining (XCNQ:GRM) ROC % : -62.81% (As of Mar. 2024)

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What is Great Republic Mining 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 %. Great Republic Mining's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -62.81%.

As of today (2024-06-23), Great Republic Mining's WACC % is 9.70%. Great Republic Mining's ROC % is -94.70% (calculated using TTM income statement data). Great Republic Mining earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Great Republic Mining ROC % Historical Data

The historical data trend for Great Republic Mining'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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Great Republic Mining ROC % Chart

Great Republic Mining Annual Data

Trend

Jun21

Jun22

Jun23

ROC %

-28.00

-187.10

-96.47

Great Republic Mining Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial								-25.40	-128.21	-18.71	-173.91	-62.81

Great Republic Mining ROC % Calculation

Great Republic Mining'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 )
=	-0.123 * ( 1 - 0% )	/	( (0.099	+	0.156)	/ 2 )
=	-0.123	/	0.1275
=	-96.47 %

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	))
=	0.648	-	0.034	-	( 0.549	-	max(0, 0.034	-	0.549	+	0.549	))
=	0.099

	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	))
=	0.566	-	0.056	-	( 0.407	-	max(0, 0.056	-	0.41	+	0.407	))
=	0.156

Great Republic Mining's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-0.152 * ( 1 - 0% )	/	( (0.228	+	0.256)	/ 2 )
=	-0.152	/	0.242
=	-62.81 %

where

	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	))
=	0.552	-	0.065	-	( 0.319	-	max(0, 0.065	-	0.324	+	0.319	))
=	0.228

	Invested Capital		(Q: Mar. 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	))
=	0.539	-	0.067	-	( 0.277	-	max(0, 0.067	-	0.283	+	0.277	))
=	0.256

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

Great Republic Mining (XCNQ:GRM) 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, Great Republic Mining's WACC % is 9.70%. Great Republic Mining's ROC % is -94.70% (calculated using TTM income statement data). Great Republic Mining 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.

Great Republic Mining ROC % Related Terms

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Great Republic Mining (XCNQ:GRM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Great Republic Mining Corp (XCNQ:GRM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

303-543 Granville Street, Vancouver, BC, CAN, V6C 1X8

Website

https://www.greatrepublic.ca

Great Republic Mining Corp is engaged in the business of mineral exploration and the acquisition of mineral property assets in Canada. It is an exploration stage mining company with one exploration property, the Porcher Mineral Property located in the Skeena Mining Division, British Columbia. Its objective is to locate and develop economic precious and base metal properties of merit and to conduct its exploration program on the Porcher Island Project.

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