Mineral Road Discovery (XCNQ:ROAD) ROC % : -62.83% (As of Nov. 2024)

View and export this data going back to 2018. Start your Free Trial

What is Mineral Road Discovery 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 %. Mineral Road Discovery's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was -62.83%.

As of today (2025-03-24), Mineral Road Discovery's WACC % is 10.00%. Mineral Road Discovery's ROC % is -37.76% (calculated using TTM income statement data). Mineral Road Discovery earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mineral Road Discovery ROC % Historical Data

The historical data trend for Mineral Road Discovery'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.

Mineral Road Discovery ROC % Chart

Mineral Road Discovery Annual Data

Trend

May18

May19

May20

May21

May22

May23

May24

ROC %

Get a 7-Day Free Trial

-58.66

-54.00

-15.41

-30.77

-31.66

Mineral Road Discovery 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															-37.33	-23.70	-30.18	-34.80	-62.83

Mineral Road Discovery ROC % Calculation

Mineral Road Discovery's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2024 is calculated as:

	ROC % (A: May. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2023 )	+	Invested Capital (A: May. 2024 ))	/ count )
=	-1.259 * ( 1 - 0% )	/	( (4.321	+	3.632)	/ 2 )
=	-1.259	/	3.9765
=	-31.66 %

where

	Invested Capital		(A: May. 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	))
=	6.825	-	1.014	-	( 1.864	-	max(0, 1.054	-	2.544	+	1.864	))
=	4.321

	Invested Capital		(A: May. 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	))
=	5.04	-	1.058	-	( 1.176	-	max(0, 1.105	-	1.455	+	1.176	))
=	3.632

Mineral Road Discovery'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 )
=	-2.292 * ( 1 - 0% )	/	( (3.978	+	3.318)	/ 2 )
=	-2.292	/	3.648
=	-62.83 %

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	))
=	5.596	-	1.002	-	( 1.516	-	max(0, 1.126	-	1.742	+	1.516	))
=	3.978

	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	))
=	7.569	-	1.261	-	( 2.99	-	max(0, 1.407	-	6.443	+	2.99	))
=	3.318

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

Mineral Road Discovery (XCNQ:ROAD) 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, Mineral Road Discovery's WACC % is 10.00%. Mineral Road Discovery's ROC % is -37.76% (calculated using TTM income statement data). Mineral Road Discovery 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.

Mineral Road Discovery ROC % Related Terms

Thank you for viewing the detailed overview of Mineral Road Discovery's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Mineral Road Discovery Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Mineral Road Discovery Inc (XCNQ:ROAD) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2501-550 Burrard Street, Vancouver, BC, CAN, V6C 2B5

Website

https://www.crestresourcesinc.com

Mineral Road Discovery Inc formerly Crest Resources Inc is engaged in the acquisition and exploration of mineral property assets in Canada, Australia and Peru and the investment in mineral exploration and mining technology companies. Some of the properties of the company are Red Metal Ridge, Split Dome Copper, Chala Copper property, Arizona Project, Cleghorn, Mt. Peyton Extension, Jonathan's Pond, and Mount Peyton.

Executives

Damien Edward Reynolds	10% Security Holder
1459988 Bc Ltd	10% Security Holder
Christopher Huggins	Senior Officer
Garry Alfred Stock	Director
Sefton Fincham	Senior Officer
Bryce Clark	Senior Officer
Nicholas Richard Rodway	Senior Officer
Emma Fairhurst	10% Security Holder
John Michael William Collins	Director
Christopher Andrew Reynolds	Director or Senior Officer of 10% Security Holder
Christopher Reynolds	Director or Senior Officer of 10% Security Holder
Paul Valdimar John	10% Security Holder, Director