Associated British Engineering (LSE:ASBE) ROC %: -161.90% (As of Sep. 2025)


LSE:ASBE Associated British Engineering PLC LSE:ASBE
34 GF Score
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! 2 Warning Signs
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What is Associated British Engineering ROC %?

Associated British Engineering LSE:ASBE 34 ROC % is -161.90% as of Sep. 2025. GuruFocus rates LSE:ASBE with a GF Score™ of 34/100. The stock has 2 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 %. Associated British Engineering's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was -161.90%.

As of today (2026-06-26), Associated British Engineering's WACC % is 2.46%. Associated British Engineering's ROC % is -118.66% (calculated using TTM income statement data). Associated British Engineering earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Associated British Engineering  (LSE:ASBE) 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, Associated British Engineering's WACC % is 2.46%. Associated British Engineering's ROC % is -118.66% (calculated using TTM income statement data). Associated British Engineering 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.

Associated British Engineering ROC % Related Terms

Associated British Engineering ROC % Historical Data

* Premium members only.

The historical data trend for Associated British Engineering'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.

Associated British Engineering ROC % Chart

Associated British Engineering Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Sep21 Sep22 Sep23 Sep24 Sep25
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.98 -19.72 -20.42 -80.30 -97.25

Associated British Engineering Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
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 -18.93 -133.33 -108.57 -101.33 -161.90
LSE:ASBE
34GF Score
Associated British Engineering PLC LSE:ASBE
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Associated British Engineering ROC % Calculation

Associated British Engineering's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2025 is calculated as:

ROC % (A: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2024 ) + Invested Capital (A: Sep. 2025 ))/ count )
=-0.053 * ( 1 - 0% )/( (0.05 + 0.059)/ 2 )
=-0.053/0.0545
=-97.25 %

where

Invested Capital(A: Sep. 2024 )
=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))
=0.418 - 0.022 - ( 0.374 - max(0, 0.051 - 0.397+0.374))
=0.05

Invested Capital(A: Sep. 2025 )
=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))
=0.362 - 0.022 - ( 0.318 - max(0, 0.059 - 0.34+0.318))
=0.059

Associated British Engineering's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=-0.068 * ( 1 - 0% )/( (0.025 + 0.059)/ 2 )
=-0.068/0.042
=-161.90 %

where

Invested Capital(Q: Mar. 2025 )
=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))
=0.392 - 0.042 - ( 0.344 - max(0, 0.042 - 0.367+0.344))
=0.025

Invested Capital(Q: Sep. 2025 )
=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))
=0.362 - 0.022 - ( 0.318 - max(0, 0.059 - 0.34+0.318))
=0.059

Note: The Operating Income data used here is two times the semi-annual (Sep. 2025) 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 -161.90% mean?
Associated British Engineering (LSE:ASBE) has a ROC % of -161.90% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Associated British Engineering and its competitors.
Is Associated British Engineering's ROC % too high?
Associated British Engineering's current ROC % is -161.90%. Overall, Associated British Engineering has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Associated British Engineering's ROC % compare to MS and GS?
Associated British Engineering's ROC % of -161.90% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.23. 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.23, based on 694 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 Associated British Engineering and its competitors. For the Capital Markets industry, the median ROC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Associated British Engineering's current ROC % is -161.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Engineering stock overvalued right now?
Associated British Engineering (LSE:ASBE) has a current ROC % of -161.90%. The current ROC % is -161.90%. Associated British Engineering's overall GF Score™ is 34/100 with 2 warning signs to review. 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 Associated British Engineering (LSE:ASBE), the current ROC % is -161.90% as of Sep. 2025. 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.

Associated British Engineering Business Description

Address 61-65 Church Street, Harston, Cambridge, GBR, CB22 7NP
Associated British Engineering Plc is a United Kingdom-based holding company. The Company's segments include Associated British Engineering Plc and Akoris Trading Limited. Akoris Trading Limited, its subsidiary, is a commodity and natural resource trading, finance, and investment company. Its operations are located in the United Kingdom.
34GF Score

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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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