Cradle Arc (LSE:ALO) ROC %: -8.82% (As of Jun. 2018)


What is Cradle Arc ROC %?

Cradle Arc LSE:ALO ROC % is -8.82% as of Jun. 2018. The stock has 6 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 %. Cradle Arc's annualized return on capital (ROC %) for the quarter that ended in Jun. 2018 was -8.82%.

As of today (2026-06-26), Cradle Arc's WACC % is 0.00%. Cradle Arc's ROC % is -12.12% (calculated using TTM income statement data). Cradle Arc earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cradle Arc  (LSE:ALO) 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, Cradle Arc's WACC % is 0.00%. Cradle Arc's ROC % is -12.12% (calculated using TTM income statement data). Cradle Arc 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.

Cradle Arc ROC % Related Terms

Cradle Arc ROC % Historical Data

* Premium members only.

The historical data trend for Cradle Arc'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.

Cradle Arc ROC % Chart

Cradle Arc Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.23 -10.72 -4.56 -4.67 -2.87

Cradle Arc Semi-Annual Data
Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
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 Premium Member Only -3.23 -5.97 -6.06 -2.52 -8.82

Cradle Arc ROC % Calculation

Cradle Arc's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2017 is calculated as:

ROC % (A: Dec. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2016 ) + Invested Capital (A: Dec. 2017 ))/ count )
=-2.285 * ( 1 - 22.01% )/( (17.661 + 106.696)/ 2 )
=-1.7820715/62.1785
=-2.87 %

where

Invested Capital(A: Dec. 2016 )
=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))
=18.087 - 0.154 - ( 0.277 - max(0, 0.43 - 0.702+0.277))
=17.661

Invested Capital(A: Dec. 2017 )
=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))
=86.21 - 5.059 - ( 0.08 - max(0, 28.251 - 2.706+0.08))
=106.696

Cradle Arc's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2018 is calculated as:

ROC % (Q: Jun. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2017 ) + Invested Capital (Q: Jun. 2018 ))/ count )
=-9.228 * ( 1 - 0% )/( (106.696 + 102.524)/ 2 )
=-9.228/104.61
=-8.82 %

where

Invested Capital(Q: Dec. 2017 )
=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))
=86.21 - 5.059 - ( 0.08 - max(0, 28.251 - 2.706+0.08))
=106.696

Invested Capital(Q: Jun. 2018 )
=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))
=88.571 - 7.504 - ( 0.25 - max(0, 24.746 - 3.289+0.25))
=102.524

Note: The Operating Income data used here is two times the semi-annual (Jun. 2018) 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 -8.82% mean?
Cradle Arc (LSE:ALO) has a ROC % of -8.82% as of Jun. 2018. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cradle Arc and its competitors.
Is Cradle Arc's ROC % too high?
Cradle Arc's current ROC % is -8.82%.
How does Cradle Arc's ROC % compare to competitors?
Cradle Arc's ROC % of -8.82% 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 Cradle Arc and its competitors. Cradle Arc's current ROC % is -8.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cradle Arc stock overvalued right now?
Cradle Arc (LSE:ALO) has a current ROC % of -8.82%. The current ROC % is -8.82%. 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 Cradle Arc (LSE:ALO), the current ROC % is -8.82% as of Jun. 2018. 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.

Cradle Arc Business Description

Address 27/28 Eastcastle Street, Eastcastle House, London, GBR, W1W 8DH
Cradle Arc PLC, formerly known as Alecto Minerals PLC is engaged in exploration and development of precious and base metals. Its main countries of operation are Botswana, Zambia and Mali. The company's properties include Mowana Copper Mine, and Matala Gold Mine.