Glenstar Ventures (XCNQ:GSTR) ROC % : -325.00% (As of Dec. 2024)

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What is Glenstar Ventures 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 %. Glenstar Ventures's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -325.00%.

As of today (2025-03-30), Glenstar Ventures's WACC % is 14.51%. Glenstar Ventures's ROC % is -318.90% (calculated using TTM income statement data). Glenstar Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Glenstar Ventures ROC % Historical Data

The historical data trend for Glenstar Ventures'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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Glenstar Ventures ROC % Chart

Glenstar Ventures Annual Data

Trend

Jun22

Jun23

Jun24

ROC %

-42.59

-173.58

-146.34

Glenstar Ventures Quarterly Data
	Jun22	Dec22	Jun23	Sep23	Dec23	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial			-154.43	-99.53	-265.27	-727.47	-325.00

Glenstar Ventures ROC % Calculation

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

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	-0.24 * ( 1 - 0% )	/	( (0.158	+	0.17)	/ 2 )
=	-0.24	/	0.164
=	-146.34 %

where

	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	))
=	0.309	-	0.042	-	( 0.144	-	max(0, 0.042	-	0.151	+	0.144	))
=	0.158

	Invested Capital		(A: Jun. 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	))
=	0.304	-	0.276	-	( 0.022	-	max(0, 0.276	-	0.134	+	0.022	))
=	0.17

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

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-0.676 * ( 1 - 0% )	/	( (0.205	+	0.211)	/ 2 )
=	-0.676	/	0.208
=	-325.00 %

where

	Invested Capital		(Q: Sep. 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	))
=	0.901	-	0.116	-	( 0.58	-	max(0, 0.116	-	0.713	+	0.58	))
=	0.205

	Invested Capital		(Q: Dec. 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	))
=	0.745	-	0.11	-	( 0.427	-	max(0, 0.11	-	0.534	+	0.427	))
=	0.211

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

Glenstar Ventures (XCNQ:GSTR) 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, Glenstar Ventures's WACC % is 14.51%. Glenstar Ventures's ROC % is -318.90% (calculated using TTM income statement data). Glenstar Ventures 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.

Glenstar Ventures ROC % Related Terms

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Glenstar Ventures Business Description

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VO2:Germany

Address

1140 - 625 Howe Street, Vancouver, BC, CAN, V6C 2T6

Website

https://www.glenstar.ca

Glenstar Ventures Inc is engaged in the acquisition and exploration of mineral properties. It is mainly focused on Nickel, Cobalt, and Copper exploration. Company projects include Green Monster Property which is located in Clark County, Nevada.

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