Vox Royalty (TSX:VOXR) ROC % : -2.93% (As of Mar. 2024)

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What is Vox Royalty 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 %. Vox Royalty's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -2.93%.

As of today (2024-06-10), Vox Royalty's WACC % is 6.82%. Vox Royalty's ROC % is 0.87% (calculated using TTM income statement data). Vox Royalty earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vox Royalty ROC % Historical Data

The historical data trend for Vox Royalty'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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Vox Royalty ROC % Chart

Vox Royalty Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-23.54

-75.56

-44.71

0.31

-0.34

Vox Royalty Quarterly Data
	Mar19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-69.94	0.02	9.08	8.96	-2.93

Vox Royalty ROC % Calculation

Vox Royalty'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 )
=	4.113 * ( 1 - 104.2% )	/	( (47.834	+	54.281)	/ 2 )
=	-0.172746	/	51.0575
=	-0.34 %

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	))
=	56.792	-	3.801	-	( 5.672	-	max(0, 4.04	-	9.197	+	5.672	))
=	47.834

	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	))
=	70.712	-	3.896	-	( 12.535	-	max(0, 3.896	-	17.82	+	12.535	))
=	54.281

Vox Royalty's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	3.308 * ( 1 - 148.08% )	/	( (54.281	+	54.384)	/ 2 )
=	-1.5904864	/	54.3325
=	-2.93 %

where

	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	))
=	70.712	-	3.896	-	( 12.535	-	max(0, 3.896	-	17.82	+	12.535	))
=	54.281

	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	))
=	70.708	-	3.377	-	( 12.947	-	max(0, 3.377	-	17.839	+	12.947	))
=	54.384

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

Vox Royalty (TSX:VOXR) 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, Vox Royalty's WACC % is 6.82%. Vox Royalty's ROC % is 0.87% (calculated using TTM income statement data). Vox Royalty 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.

Vox Royalty ROC % Related Terms

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Vox Royalty (TSX:VOXR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Vox Royalty Corp (TSX:VOXR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

VOXR:USA

Address

66 Wellington Street West, Suite 5300, Td Bank Tower, Toronto, ON, CAN, M5K1E6

Website

https://www.voxroyalty.com

Vox Royalty Corp is a returns-focused mining royalty company with a portfolio of over 60 royalties and streams spanning eight jurisdictions. It has built intellectual property, a technically focused transactional team, and a sourcing network which has allowed Vox to target the highest returns on royalty acquisitions in the mining royalty sector.

Executives

Donovan Pollitt

Director