AEDC (American Energy Development) ROC %: -4.94% (As of Sep. 2013)

What is American Energy Development ROC %?

American Energy Development AEDC -99.95% ROC % is -4.94% as of Sep. 2013.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. American Energy Development's annualized return on capital (ROC %) for the quarter that ended in Sep. 2013 was -4.94%.

As of today (2026-06-26), American Energy Development's WACC % is 0.00%. American Energy Development's ROC % is 0.00% (calculated using TTM income statement data). American Energy Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

American Energy Development (OTCPK:AEDC) 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, American Energy Development's WACC % is 0.00%. American Energy Development's ROC % is 0.00% (calculated using TTM income statement data). American Energy Development 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.

American Energy Development ROC % Related Terms

American Energy Development ROC % Historical Data

* Premium members only.

The historical data trend for American Energy Development'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.

American Energy Development ROC % Chart

American Energy Development Annual Data

Trend

Jun11

Jun12

Jun13

ROC %

-9.47

-6.16

-3.88

American Energy Development Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROC %	Get a 7-Day Free Trial								-3.79	-5.76	-6.84	-2.18	-4.94

American Energy Development ROC % Calculation

American Energy Development's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2013 is calculated as:

	ROC % (A: Jun. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2012 )	+	Invested Capital (A: Jun. 2013 ))	/ count )
=	-0.28 * ( 1 - 0% )	/	( (14.012	+	0.405)	/ 2 )
=	-0.28	/	7.2085
=	-3.88 %

where

	Invested Capital		(A: Jun. 2012 )
=	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	))
=	14.106	-	0.212	-	( 0.084	-	max(0, 0.212	-	0.094	+	0.084	))
=	14.012

	Invested Capital		(A: Jun. 2013 )
=	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	))
=	0.428	-	0.25	-	( 0.01	-	max(0, 0.25	-	0.023	+	0.01	))
=	0.405

American Energy Development's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2013 is calculated as:

	ROC % (Q: Sep. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Sep. 2013 ))	/ count )
=	-0.02 * ( 1 - 0% )	/	( (0.405	+	0.405)	/ 2 )
=	-0.02	/	0.405
=	-4.94 %

where

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	0.428	-	0.25	-	( 0.01	-	max(0, 0.25	-	0.023	+	0.01	))
=	0.405

	Invested Capital		(Q: Sep. 2013 )
=	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	))
=	0.428	-	0.254	-	( 0.009	-	max(0, 0.254	-	0.023	+	0.009	))
=	0.405

Note: The Operating Income data used here is four times the quarterly (Sep. 2013) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -4.94% mean?

American Energy Development (AEDC) has a ROC % of -4.94% as of Sep. 2013. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Energy Development and its competitors.

Is American Energy Development's ROC % too high?

American Energy Development's current ROC % is -4.94%.

How does American Energy Development's ROC % compare to BRZV and CWLXF?

American Energy Development's ROC % of -4.94% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for an Oil & Gas company?

The median ROC % among Oil & Gas companies is 3.63, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % 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 ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on American Energy Development and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Energy Development's current ROC % is -4.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is American Energy Development stock overvalued right now?

American Energy Development (AEDC) has a current ROC % of -4.94%. The current ROC % is -4.94%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For American Energy Development (AEDC), the current ROC % is -4.94% as of Sep. 2013. 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.

American Energy Development Business Description

Industry Energy Oil & Gas

Comparable Companies BRZV CWLXF UNIGF JKXOY AKVA BYIN IFNY GDPMQ GPIPF EMPR HEXPF DRKOF UERLF PTRDF ARSLF DBRM ALTX EXNT CNENF EMBYF

Address 1230 Avenue of the Americas, 7th Floor, New York, NY, USA, 10020

Website http://www.aed-corp.com

American Energy Development Corp is an independent USA energy company. It intends to locate, drill, and produce oil and gas in the USA and secure regions. The company is focused on the development of Niagaran oil reefs in Michigan and the underexplored onshore basins in the UK.