QIMGF (Quimbaya Gold) ROC % : -46.27% (As of Jun. 2024)

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What is Quimbaya 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 %. Quimbaya Gold's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -46.27%.

As of today (2024-11-11), Quimbaya Gold's WACC % is 9.39%. Quimbaya Gold's ROC % is -63.72% (calculated using TTM income statement data). Quimbaya Gold earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Quimbaya Gold ROC % Historical Data

The historical data trend for Quimbaya 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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Quimbaya Gold ROC % Chart

Quimbaya Gold Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-380.49

-389.16

-50.60

Quimbaya Gold Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial									-262.62	-256.85	-65.05	-52.57	-46.27

Quimbaya Gold ROC % Calculation

Quimbaya Gold'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 )
=	-0.909 * ( 1 - 0% )	/	( (0.206	+	3.387)	/ 2 )
=	-0.909	/	1.7965
=	-50.60 %

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	))
=	0.464	-	0.063	-	( 0.244	-	max(0, 0.063	-	0.258	+	0.244	))
=	0.206

	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	))
=	3.527	-	0.148	-	( 0.016	-	max(0, 0.179	-	0.171	+	0.016	))
=	3.387

Quimbaya Gold'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 )
=	-1.808 * ( 1 - 0% )	/	( (3.568	+	4.247)	/ 2 )
=	-1.808	/	3.9075
=	-46.27 %

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	))
=	3.407	-	0.318	-	( 0.001	-	max(0, 0.553	-	0.074	+	0.001	))
=	3.568

	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	))
=	3.856	-	0.26	-	( 0.007	-	max(0, 0.692	-	0.041	+	0.007	))
=	4.247

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

Quimbaya Gold (OTCPK:QIMGF) 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, Quimbaya Gold's WACC % is 9.39%. Quimbaya Gold's ROC % is -63.72% (calculated using TTM income statement data). Quimbaya 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.

Quimbaya Gold ROC % Related Terms

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Quimbaya Gold Business Description

Industry

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QIM:Canada

Address

100 King Street West, Suite 6000, Toronto, ON, CAN, M5X 1E2

Website

https://www.quimbayagold.com

Quimbaya Gold Inc is engaged in the acquisition, exploration, and development of mineral properties in Colombia. The company holds interests in the Berrio project situated within the Segovia gold belt.