African Copper (LSE:ACU) EBIT: £-3.02 Mil (TTM As of Sep. 2014)


What is African Copper EBIT?

African Copper LSE:ACU +10.00% EBIT is £-3.02 Mil as of Sep. 2014. The stock has 4 warning signs investors should review.

African Copper's earnings before interest and taxes (EBIT) for the six months ended in Sep. 2014 was £-2.48 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2014 was £-3.02 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. African Copper's annualized ROC % for the quarter that ended in Sep. 2014 was -1.67%. African Copper's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 was -15.27%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. African Copper's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2014 was -43.84%.

African Copper  (LSE:ACU) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

African Copper's annualized ROC % for the quarter that ended in Sep. 2014 is calculated as:

ROC % (Q: Sep. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2014 ) + Invested Capital (Q: Sep. 2014 ))/ count )
=-0.6 * ( 1 - 0% )/( (32.002 + 39.684)/ 2 )
=-0.6/35.843
=-1.67 %

where

Invested Capital(Q: Mar. 2014 )
=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))
=41.368 - 67.72 - ( 2.627 - max(0, 69.074 - 10.72+2.627))
=32.002

Invested Capital(Q: Sep. 2014 )
=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))
=47.298 - 72.408 - ( 1.41 - max(0, 74.312 - 9.518+1.41))
=39.684

Note: The Operating Income data used here is two times the semi-annual (Sep. 2014) data.

2. Joel Greenblatt's definition of Return on Capital:

African Copper's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2014  Q: Sep. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-4.958/( ( (27.301 + max(-60.204, 0)) + (37.631 + max(-67.318, 0)) )/ 2 )
=-4.958/( ( 27.301 + 37.631 )/ 2 )
=-4.958/32.466
=-15.27 %

where Working Capital is:

Working Capital(Q: Mar. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.688 + 4.59 + 0.238) - (67.72 + 0 + 0)
=-60.204

Working Capital(Q: Sep. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 4.596 + 0.494) - (72.408 + 0 + 0)
=-67.318

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Sep. 2014) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

African Copper's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2014 )
=-3.016/6.879
=-43.84 %

* 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.

African Copper EBIT Related Terms

African Copper EBIT Historical Data

* Premium members only.

The historical data trend for African Copper's EBIT 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.

African Copper EBIT Chart

African Copper Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Mar11 Mar12 Mar13 Mar14
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.71 -1.41 -21.45 -3.84 -15.17

African Copper Semi-Annual Data
Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.45 -1.23 -15.31 -0.54 -2.48

African Copper EBIT Competitor Comparison

For the Copper subindustry, African Copper's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

African Copper EV-to-EBIT vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, African Copper's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where African Copper's EV-to-EBIT falls into.


African Copper EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2014 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-3.02 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £-3.02 Mil mean?
African Copper (LSE:ACU) has a EBIT of £-3.02 Mil as of Sep. 2014. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on African Copper.
Is African Copper's EBIT too high?
African Copper's current EBIT is £-3.02 Mil.
How does African Copper's EBIT compare to competitors?
African Copper's EBIT of £-3.02 Mil can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Metals & Mining company?
A good EBIT depends on the Metals & Mining industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on African Copper. African Copper's current EBIT is £-3.02 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Copper stock overvalued right now?
African Copper (LSE:ACU) has a current EBIT of £-3.02 Mil. The current EBIT is £-3.02 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For African Copper (LSE:ACU), the current EBIT is £-3.02 Mil as of Sep. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

African Copper Business Description

African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.