ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. African Copper's annualizedNet Income for the quarter that ended in Sep. 2014 was £-10.85 Mil.
African Copper's average Total Assets over the quarter that ended in Sep. 2014 was £44.33 Mil. Therefore, African Copper's annualized ROA % for the quarter that ended in Sep. 2014 was -24.46%.
The historical rank and industry rank for African Copper's ROA % or its related term are showing as below:
LSE:ACU'
s ROA % Range Over the Past 10 Years
Min: -206.97 Med: -10.13 Max: 73.67
Current: -45.05
During the past 10 years, African Copper's highest ROA % was 73.67%. The lowest was -206.97%. And the median was -10.13%.
LSE:ACU's ROA % is not ranked
in the Metals & Mining industry.
Industry Median: -16.72
vs LSE:ACU: -45.05
African Copper (LSE:ACU) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Sep. 2014) net income data. The Revenue data used here is two times the semi-annual (Sep. 2014) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months 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. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
African Copper ROA % Related Terms
African Copper ROA % Historical Data
* Premium members only.
The historical data trend for African Copper's ROA % 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.
For the Copper subindustry, African Copper's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, African Copper's ROA % distribution charts can be found below:
* The bar in red indicates where African Copper's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Sep. 2014) net income data.
ROA % is displayed in the 30-year financial page.
African Copper (LSE:ACU) has a ROA % of -24.46% as of Sep. 2014. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on African Copper and its competitors.
Is African Copper's ROA % too high?
African Copper's current ROA % is -24.46%.
How does African Copper's ROA % compare to competitors?
African Copper's ROA % of -24.46% 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 ROA % for a Metals & Mining company?
A good ROA % depends on the Metals & Mining industry context. However, ROA % 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on African Copper and its competitors. African Copper's current ROA % is -24.46%. 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 ROA % of -24.46%. The current ROA % is -24.46%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For African Copper (LSE:ACU), the current ROA % is -24.46% 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 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.
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