African Copper (LSE:ACU) ROC %: -1.67% (As of Sep. 2014)


What is African Copper ROC %?

African Copper LSE:ACU +10.00% ROC % is -1.67% as of Sep. 2014. The stock has 4 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. African Copper's annualized return on capital (ROC %) for the quarter that ended in Sep. 2014 was -1.67%.

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

African Copper  (LSE:ACU) 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, African Copper's WACC % is 0.00%. African Copper's ROC % is 0.00% (calculated using TTM income statement data). African Copper 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.

African Copper ROC % Related Terms

African Copper ROC % Historical Data

* Premium members only.

The historical data trend for African Copper'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.

African Copper ROC % Chart

African Copper Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Mar11 Mar12 Mar13 Mar14
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.16 -3.00 -33.49 7.20 -31.22

African Copper Semi-Annual Data
Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
ROC % 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 1.07 13.71 -71.40 7.51 -1.67

African Copper ROC % Calculation

African Copper's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2014 is calculated as:

ROC % (A: Mar. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2013 ) + Invested Capital (A: Mar. 2014 ))/ count )
=-12.514 * ( 1 - 0% )/( (48.177 + 32.002)/ 2 )
=-12.514/40.0895
=-31.22 %

where

Invested Capital(A: Mar. 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))
=59.142 - 68.259 - ( 1.634 - max(0, 68.279 - 10.985+1.634))
=48.177

Invested Capital(A: 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

African Copper's annualized Return on Capital (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. The tax rate is limited to between 0% and 100%.

* 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 ROC % →
What does a ROC % of -1.67% mean?
African Copper (LSE:ACU) has a ROC % of -1.67% as of Sep. 2014. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on African Copper and its competitors.
Is African Copper's ROC % too high?
African Copper's current ROC % is -1.67%.
How does African Copper's ROC % compare to competitors?
African Copper's ROC % of -1.67% 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 ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. 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 African Copper and its competitors. African Copper's current ROC % is -1.67%. 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 ROC % of -1.67%. The current ROC % is -1.67%. 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 African Copper (LSE:ACU), the current ROC % is -1.67% 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.