American Battery Technology Co (American Battery Technology Co) ROC % : -37.54% (As of Mar. 2024)

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What is American Battery Technology Co 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 %. American Battery Technology Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -37.54%.

As of today (2024-05-26), American Battery Technology Co's WACC % is 13.63%. American Battery Technology Co's ROC % is -38.46% (calculated using TTM income statement data). American Battery Technology Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

American Battery Technology Co ROC % Historical Data

The historical data trend for American Battery Technology Co'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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American Battery Technology Co ROC % Chart

American Battery Technology Co Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Jun21

Jun22

Jun23

ROC %

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-463.62

-379.96

-685.32

-222.18

-43.54

American Battery Technology Co Quarterly Data
	Jun19	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															-58.13	-48.33	-30.23	-35.29	-37.54

American Battery Technology Co ROC % Calculation

American Battery Technology Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-21.575 * ( 1 - 0% )	/	( (23.073	+	76.027)	/ 2 )
=	-21.575	/	49.55
=	-43.54 %

where

	Invested Capital		(A: Jun. 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	))
=	52.862	-	2.952	-	( 29.01	-	max(0, 3.052	-	29.889	+	29.01	))
=	23.073

	Invested Capital		(A: Jun. 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	))
=	74.659	-	7.268	-	( 2.331	-	max(0, 13.39	-	4.754	+	2.331	))
=	76.027

American Battery Technology Co'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 )
=	-34.428 * ( 1 - 0% )	/	( (93.693	+	89.745)	/ 2 )
=	-34.428	/	91.719
=	-37.54 %

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	))
=	88.869	-	5.904	-	( 7.726	-	max(0, 22.296	-	11.568	+	7.726	))
=	93.693

	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	))
=	89.257	-	6.175	-	( 6.055	-	max(0, 17.009	-	10.346	+	6.055	))
=	89.745

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

American Battery Technology Co (NAS:ABAT) 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, American Battery Technology Co's WACC % is 13.63%. American Battery Technology Co's ROC % is -38.46% (calculated using TTM income statement data). American Battery Technology Co 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.

American Battery Technology Co ROC % Related Terms

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American Battery Technology Co (American Battery Technology Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » American Battery Technology Co (NAS:ABAT) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Washington Street, Suite 100, Reno, NV, USA, 89503

Website

https://www.americanbatterytechnology.com

American Battery Technology Co is engaged in lithium-ion battery recycling, battery metals and material extraction, and resource production. It is a battery metals company producing low-cost battery metals with a commitment to closed-loop, clean energy technologies.

Executives

Jesse Samuel Deutsch	officer: Chief Financial Officer	269 BOOTH LN, HAVERFORD PA 19041
Fezell Donald Richard Jr	director	PO BOX 2384, CARMEL CA 93921
Kimberly Ann Eckert	officer: Chief Financial Officer	1560 W 37TH AVE, DENVER CO 80211
Elizabeth Ann Lowery	director	275 DATE PALM RD #303, VERO BEACH FL 32963
Douglas Cole	director, officer: CEO, CFO	C/O AMERICAN BATTERY METALS CORP, 930 TAHOE BLVD, STE 802-16, INCLINE VILLAGE NV 89451
Julia Blunden	director	16765 EDGAR ST., PACIFIC PALISADES CA 90272
Sherif Marakby	director	6061 FAIRBORN DR, CANTON MI 48187
Douglas Charles Maclellan	director	11825 MAJOR STREET, CULVER CITY CA 90230
David Bruce Batstone	director	PO BOX 253, EL GRANADA CA 94018
Scott Jolcover	officer: Chief Resource Officer	PO BOX 1118, VIRGINIA CITY NV 89440
Meza Leal Andres Manuel	officer: Chief Operating Officer	202 SEAVIEW STREET, #209, MANHATTAN BEACH CA 90266
John Hunter William	director	930 TAHOE BOULEVARD, SUITE 802-16, INCLINE VILLAGE NV 89451
David Corsaut	officer: Chief Financial Officer	22120 SERENATA CIRCLE, BOCA RATON FL 33433
Ryan Mitchell Melsert	director, officer: Chief Technology Officer	255 N SIERRA ST, UNIT 1512, RENO NV 89501
Michael Thomas Mason	director, officer: Chief Executive Officer	142 STRATFORD AVE, GARDEN CITY NY 11530