Arian Resources (Arian Resources) ROC % : -505.00% (As of Nov. 2016)

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What is Arian Resources 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 %. Arian Resources's annualized return on capital (ROC %) for the quarter that ended in Nov. 2016 was -505.00%.

As of today (2024-05-29), Arian Resources's WACC % is 0.00%. Arian Resources's ROC % is 0.00% (calculated using TTM income statement data). Arian Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Arian Resources ROC % Historical Data

The historical data trend for Arian Resources'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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Arian Resources ROC % Chart

Arian Resources Annual Data

Trend

May07

May08

May09

May10

May11

May12

May13

May14

May15

May16

ROC %

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-16.22

-84.97

-481.75

-79.31

-67.75

Arian Resources Quarterly Data
	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16
ROC %	Get a 7-Day Free Trial															-31.82	-51.09	-107.16	-902.13	-505.00

Arian Resources ROC % Calculation

Arian Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2016 is calculated as:

	ROC % (A: May. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2015 )	+	Invested Capital (A: May. 2016 ))	/ count )
=	-1.434 * ( 1 - 0% )	/	( (4.206	+	0.027)	/ 2 )
=	-1.434	/	2.1165
=	-67.75 %

where

	Invested Capital		(A: May. 2015 )
=	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	))
=	4.223	-	2.59	-	( 0.035	-	max(0, 2.677	-	0.104	+	0.035	))
=	4.206

	Invested Capital		(A: May. 2016 )
=	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	))
=	0.06	-	3.092	-	( 0.003	-	max(0, 3.092	-	0.033	+	0.003	))
=	0.027

Arian Resources's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2016 is calculated as:

	ROC % (Q: Nov. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2016 )	+	Invested Capital (Q: Nov. 2016 ))	/ count )
=	-0.404 * ( 1 - 0% )	/	( (0.067	+	0.093)	/ 2 )
=	-0.404	/	0.08
=	-505.00 %

where

	Invested Capital		(Q: Aug. 2016 )
=	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	))
=	0.088	-	3.194	-	( 0.003	-	max(0, 3.214	-	0.041	+	0.003	))
=	0.067

	Invested Capital		(Q: Nov. 2016 )
=	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	-	3.174	-	( 0.004	-	max(0, 3.222	-	0.051	+	0.004	))
=	0.093

Note: The Operating Income data used here is four times the quarterly (Nov. 2016) data.

Arian Resources (OTCPK:GNHRF) 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, Arian Resources's WACC % is 0.00%. Arian Resources's ROC % is 0.00% (calculated using TTM income statement data). Arian Resources 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.

Arian Resources ROC % Related Terms

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Arian Resources (Arian Resources) Business Description

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Address

1199 West Hastings Street, Suite 800, Vancouver, BC, CAN, V6E 3T5

Website

http://www.arianresources.com

Arian Resources Corp is a mineral exploration company. It is engaged in the acquisition, exploration, and development of mineral properties in Canada. It primarily explores for gold, platinum group elements, chromite, and copper ores. It holds interests in Albanian exploration projects located in Northern Albania and also owns interest in a copper mining exploitation permit located in Albania. It operates through Mineral exploration segment and generates revenue from the same.

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