Inca One Gold (TSXV:INCA) ROC % : 4.62% (As of Jan. 2024)

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What is Inca One Gold 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 %. Inca One Gold's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was 4.62%.

As of today (2024-06-09), Inca One Gold's WACC % is 9.64%. Inca One Gold's ROC % is -2.05% (calculated using TTM income statement data). Inca One Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Inca One Gold ROC % Historical Data

The historical data trend for Inca One Gold'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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Inca One Gold ROC % Chart

Inca One Gold Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROC %

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-6.59

-14.82

-18.48

-7.96

-3.70

Inca One Gold Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial															4.90	-9.76	0.15	-3.96	4.62

Inca One Gold ROC % Calculation

Inca One Gold's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2023 is calculated as:

	ROC % (A: Apr. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2022 )	+	Invested Capital (A: Apr. 2023 ))	/ count )
=	-1.158 * ( 1 - -0.3% )	/	( (30.142	+	32.618)	/ 2 )
=	-1.161474	/	31.38
=	-3.70 %

where

	Invested Capital		(A: Apr. 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	))
=	32.502	-	6.098	-	( 1.976	-	max(0, 22.756	-	19.018	+	1.976	))
=	30.142

	Invested Capital		(A: Apr. 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	))
=	28.233	-	5.538	-	( 1.027	-	max(0, 24.557	-	14.634	+	1.027	))
=	32.618

Inca One Gold's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	1.644 * ( 1 - 0% )	/	( (35.539	+	35.666)	/ 2 )
=	1.644	/	35.6025
=	4.62 %

where

	Invested Capital		(Q: Oct. 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	))
=	28.957	-	6.812	-	( 1.3	-	max(0, 28.618	-	15.224	+	1.3	))
=	35.539

	Invested Capital		(Q: Jan. 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	))
=	30.94	-	7.301	-	( 1.678	-	max(0, 29.047	-	17.02	+	1.678	))
=	35.666

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

Inca One Gold (TSXV:INCA) 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, Inca One Gold's WACC % is 9.64%. Inca One Gold's ROC % is -2.05% (calculated using TTM income statement data). Inca One Gold 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.

Inca One Gold ROC % Related Terms

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Inca One Gold (TSXV:INCA) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Inca One Gold Corp (TSXV:INCA) » Definitions » ROC %

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INCAF:USA SU92:Germany

Address

1140 West Pender Street, Suite 850, Vancouver, BC, CAN, V6E 4G1

Website

https://www.incaone.com

Inca One Gold Corp is a mineral resource company and mineral processing company. It is engaged in the business of developing gold-bearing mineral processing operations in Peru. Its activities consist of the production of gold and silver from the processing of purchased minerals. It provides its service basically to small-scale miners. It's Chala One milling facility located in Chala, Southern Peru. The Koricancha ore processing facility located in Peru. The company operates through a gold milling facility and generates revenue from the same.

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