Afentra (LSE:AET) ROC % : 25.89% (As of Dec. 2024)

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What is Afentra 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 %. Afentra's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 25.89%.

As of today (2025-07-22), Afentra's WACC % is 13.47%. Afentra's ROC % is 29.86% (calculated using TTM income statement data). Afentra generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Afentra ROC % Historical Data

The historical data trend for Afentra'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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Afentra ROC % Chart

Afentra Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-9.54

-22.33

-34.11

9.69

41.52

Afentra Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															-40.01	-12.27	4.77	26.76	25.89

Afentra ROC % Calculation

Afentra's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	58.905 * ( 1 - 20.17% )	/	( (88.653	+	137.843)	/ 2 )
=	47.0238615	/	113.248
=	41.52 %

where

	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	))
=	111.19	-	24.255	-	( 11.636	-	max(0, 36.28	-	34.562	+	11.636	))
=	88.653

	Invested Capital		(A: Dec. 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	))
=	179.247	-	39.848	-	( 37.082	-	max(0, 56.257	-	57.813	+	37.082	))
=	137.843

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

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	63.82 * ( 1 - 22.42% )	/	( (244.593	+	137.843)	/ 2 )
=	49.511556	/	191.218
=	25.89 %

where

	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	))
=	271.266	-	43.184	-	( 10.861	-	max(0, 76.214	-	59.703	+	10.861	))
=	244.593

	Invested Capital		(Q: Dec. 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	))
=	179.247	-	39.848	-	( 37.082	-	max(0, 56.257	-	57.813	+	37.082	))
=	137.843

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

Afentra (LSE:AET) 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, Afentra's WACC % is 13.47%. Afentra's ROC % is 29.86% (calculated using TTM income statement data). Afentra generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Afentra ROC % Related Terms

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Afentra Business Description

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Address

10 St Bride Street, London, GBR, EC4A 4AD

Website

https://www.afentraplc.com

Afentra PLC is an upstream oil and gas company in the United Kingdom with a focus on exploring opportunities across Africa. Its purpose is to support the energy transition in Africa by establishing itself as a credible partner for divesting IOCs and Host Governments. It holds a non-operated interest in several key blocks. The group has a non-operated interest in producing Block 3/05, as well as in the adjacent development Block 3/05A in the Lower Congo Basin, Angola. Additionally, it holds a non-operating interest in the exploration of Block 23 in the Kwanza Basin. Onshore Angola, Afentra has a non-operated interest in Block KON 19, located in the western part of the Onshore Kwanza Basin. It also has a carried interest in the Odewayne Block, located onshore in southwestern Somaliland.