GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » African Pioneer PLC (LSE:AFP) » Definitions » ROC %

African Pioneer (LSE:AFP) ROC % : -12.01% (As of Jun. 2024)


View and export this data going back to 2021. Start your Free Trial

What is African Pioneer 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 %. African Pioneer's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -12.01%.

As of today (2025-03-17), African Pioneer's WACC % is 15.72%. African Pioneer's ROC % is -12.73% (calculated using TTM income statement data). African Pioneer earns returns that do not match up to its cost of capital. It will destroy value as it grows.


African Pioneer ROC % Historical Data

The historical data trend for African Pioneer'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.

* Premium members only.

African Pioneer ROC % Chart

African Pioneer Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial -20.88 -66.95 -8.80 -13.33 -13.23

African Pioneer Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only -8.86 -16.75 -12.85 -13.46 -12.01

African Pioneer ROC % Calculation

African Pioneer's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-0.695 * ( 1 - 0% )/( (5.163 + 5.343)/ 2 )
=-0.695/5.253
=-13.23 %

where

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

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-0.644 * ( 1 - 0% )/( (5.343 + 5.383)/ 2 )
=-0.644/5.363
=-12.01 %

where

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


African Pioneer  (LSE:AFP) 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 Pioneer's WACC % is 15.72%. African Pioneer's ROC % is -12.73% (calculated using TTM income statement data). African Pioneer 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 Pioneer ROC % Related Terms

Thank you for viewing the detailed overview of African Pioneer's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


African Pioneer Business Description

Traded in Other Exchanges
N/A
Address
19-21 Circular Road, Douglas, IMN, IM1 1AF
African Pioneer PLC is engaged in exploring opportunities within the natural resources sector in Sub-Saharan Africa, with a focus on base and precious metals including but not limited to copper, nickel, and zinc. The company' tends to enhance the value of its mineral resource Projects located in Namibia, Zambia, and Botswana through exploration and technical studies conducted by the company or through a joint venture or other arrangements to establish the Projects.

African Pioneer Headlines

No Headlines