Starlo Ventures (XCNQ:SLO) ROC % : -1,200.00% (As of Dec. 2023)

View and export this data going back to 2023. Start your Free Trial

What is Starlo 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 %. Starlo Ventures's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -1,200.00%.

As of today (2024-05-24), Starlo Ventures's WACC % is 9.70%. Starlo Ventures's ROC % is -2091.84% (calculated using TTM income statement data). Starlo Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Starlo Ventures ROC % Historical Data

The historical data trend for Starlo 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.

* Premium members only.

Starlo Ventures ROC % Chart

Starlo Ventures Annual Data

Trend

Dec22

Dec23

ROC %

-2,912.50

-2,928.57

Starlo Ventures Quarterly Data
	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial			-7,250.00	-4,746.67	-1,828.57	-1,085.71	-1,200.00

Starlo Ventures ROC % Calculation

Starlo Ventures's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.205 * ( 1 - 0% )	/	( (0.008	+	0.006)	/ 2 )
=	-0.205	/	0.007
=	-2,928.57 %

where

	Invested Capital		(A: Dec. 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	))
=	0.331	-	0.069	-	( 0.323	-	max(0, 0.075	-	0.329	+	0.323	))
=	0.008

	Invested Capital		(A: 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	))
=	0.082	-	0.019	-	( 0.057	-	max(0, 0.019	-	0.079	+	0.057	))
=	0.006

Starlo Ventures's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.12 * ( 1 - 0% )	/	( (0.014	+	0.006)	/ 2 )
=	-0.12	/	0.01
=	-1,200.00 %

where

	Invested Capital		(Q: Sep. 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	))
=	0.096	-	0.004	-	( 0.078	-	max(0, 0.004	-	0.094	+	0.078	))
=	0.014

	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	))
=	0.082	-	0.019	-	( 0.057	-	max(0, 0.019	-	0.079	+	0.057	))
=	0.006

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Starlo Ventures (XCNQ:SLO) 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, Starlo Ventures's WACC % is 9.70%. Starlo Ventures's ROC % is -2091.84% (calculated using TTM income statement data). Starlo 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.

Starlo Ventures ROC % Related Terms

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

Starlo Ventures (XCNQ:SLO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Starlo Ventures Ltd (XCNQ:SLO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

400 Burrard Street, Suite 1400, Vancouver, BC, CAN, V6C 3A6

Website

Starlo Ventures Ltd is engaged in the business of mineral exploration with a focus on precious metals. It holds interest in Mount Richards Property which is located on the southern part of Vancouver Island, British Columbia within a belt of Devonian volcanic and sedimentary rocks.

Starlo Ventures (XCNQ:SLO) Headlines

No Headlines