Mercado Minerals (XCNQ:MERC) ROC % : -89.60% (As of Nov. 2024)

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What is Mercado Minerals 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 %. Mercado Minerals's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -89.60%.

As of today (2025-03-25), Mercado Minerals's WACC % is 9.29%. Mercado Minerals's ROC % is -61.55% (calculated using TTM income statement data). Mercado Minerals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mercado Minerals ROC % Historical Data

The historical data trend for Mercado Minerals'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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Mercado Minerals ROC % Chart

Mercado Minerals Annual Data

Trend

Feb22

Feb23

Feb24

ROC %

-133.70

-143.14

-73.60

Mercado Minerals Quarterly Data
	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROC %	Get a 7-Day Free Trial									-77.06	-43.82	-60.26	-53.76	-89.60

Mercado Minerals ROC % Calculation

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

	ROC % (A: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2023 )	+	Invested Capital (A: Feb. 2024 ))	/ count )
=	-0.191 * ( 1 - 0% )	/	( (0.207	+	0.312)	/ 2 )
=	-0.191	/	0.2595
=	-73.60 %

where

	Invested Capital		(A: Feb. 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	))
=	0.326	-	0.034	-	( 0.104	-	max(0, 0.034	-	0.119	+	0.104	))
=	0.207

	Invested Capital		(A: Feb. 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	))
=	0.321	-	0.128	-	( 0.006	-	max(0, 0.128	-	0.009	+	0.006	))
=	0.312

Mercado Minerals'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 )
=	-0.28 * ( 1 - 0% )	/	( (0.313	+	0.312)	/ 2 )
=	-0.28	/	0.3125
=	-89.60 %

where

	Invested Capital		(Q: Aug. 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	))
=	0.328	-	0.049	-	( 0.01	-	max(0, 0.049	-	0.015	+	0.01	))
=	0.313

	Invested Capital		(Q: Nov. 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	))
=	0.386	-	0.086	-	( 0.069	-	max(0, 0.086	-	0.074	+	0.069	))
=	0.312

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

Mercado Minerals (XCNQ:MERC) 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, Mercado Minerals's WACC % is 9.29%. Mercado Minerals's ROC % is -61.55% (calculated using TTM income statement data). Mercado Minerals 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.

Mercado Minerals ROC % Related Terms

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Mercado Minerals Business Description

Industry

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Traded in Other Exchanges

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Address

551 Howe Street, Suite 200, Vancouver, BC, CAN, V6C 2C2

Website

Mercado Minerals Ltd formerly Heartfield Mining Corp is engaged in the acquisition and exploration of mineral property assets. It operates in one geographic location, Canada, and has one reportable segment, the exploration and evaluation of mineral resource properties.

Executives