Voltage Metals (XCNQ:VOLT) ROC % : -25.34% (As of Jun. 2024)

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What is Voltage Metals 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 %. Voltage Metals's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -25.34%.

As of today (2024-09-22), Voltage Metals's WACC % is 9.20%. Voltage Metals's ROC % is -82.12% (calculated using TTM income statement data). Voltage Metals earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Voltage Metals ROC % Historical Data

The historical data trend for Voltage Metals'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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Voltage Metals ROC % Chart

Voltage Metals Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-16.17

-19.73

-27.18

-421.58

-166.39

Voltage Metals Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial															-73.64	-152.38	-122.18	-106.54	-25.34

Voltage Metals ROC % Calculation

Voltage Metals'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 )
=	-0.604 * ( 1 - 0% )	/	( (0.345	+	0.381)	/ 2 )
=	-0.604	/	0.363
=	-166.39 %

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	))
=	0.469	-	0.669	-	( 0.21	-	max(0, 1.014	-	0.469	+	0.21	))
=	0.345

	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	))
=	0.607	-	0.614	-	( 0.233	-	max(0, 0.995	-	0.607	+	0.233	))
=	0.381

Voltage Metals's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-0.232 * ( 1 - 0% )	/	( (0.903	+	0.928)	/ 2 )
=	-0.232	/	0.9155
=	-25.34 %

where

	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	))
=	0.792	-	0.482	-	( 0.26	-	max(0, 1.385	-	0.792	+	0.26	))
=	0.903

	Invested Capital		(Q: 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	))
=	0.733	-	0.489	-	( 0.184	-	max(0, 1.417	-	0.733	+	0.184	))
=	0.928

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

Voltage Metals (XCNQ:VOLT) 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, Voltage Metals's WACC % is 9.20%. Voltage Metals's ROC % is -82.12% (calculated using TTM income statement data). Voltage Metals 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.

Voltage Metals ROC % Related Terms

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Voltage Metals Business Description

Industry

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Traded in Other Exchanges

VLTMF:USA 8L10:Germany

Address

5000 Yonge Street, Suite 1901, Toronto, ON, CAN, M2N 7E9

Website

https://www.voltagemetals.com

Voltage Metals Corp is an exploration company focused on advancing battery metals projects. It is a producer of nickel, copper, cobalt and PGE's. The principal business carried on by the company include the acquisition, exploration and development of its St. Laurent project, Wheeler project, Skyfire project, etc.