ARM Cement (NAI:ARM) ROC %: -30.24% (As of Dec. 2017)


What is ARM Cement ROC %?

ARM Cement NAI:ARM ROC % is -30.24% as of Dec. 2017.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ARM Cement's annualized return on capital (ROC %) for the quarter that ended in Dec. 2017 was -30.24%.

As of today (2026-06-27), ARM Cement's WACC % is 0.00%. ARM Cement's ROC % is 0.00% (calculated using TTM income statement data). ARM Cement earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ARM Cement  (NAI:ARM) 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, ARM Cement's WACC % is 0.00%. ARM Cement's ROC % is 0.00% (calculated using TTM income statement data). ARM Cement 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.

ARM Cement ROC % Related Terms

ARM Cement ROC % Historical Data

* Premium members only.

The historical data trend for ARM Cement'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.

ARM Cement ROC % Chart

ARM Cement 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 6.19 4.57 4.03 -0.40 -7.18

ARM Cement Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17
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 2.99 15.59 -16.70 20.22 -30.24

ARM Cement ROC % Calculation

ARM Cement'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 )
=-4264.3 * ( 1 - 12.92% )/( (51454.805 + 52015.449)/ 2 )
=-3713.35244/51735.127
=-7.18 %

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))
=51058.802 - 5477.761 - ( 157.164 - max(0, 14159.435 - 8285.671+157.164))
=51454.805

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))
=42699.067 - 4154.675 - ( 147.777 - max(0, 17194.544 - 3723.487+147.777))
=52015.449

ARM Cement's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2017 is calculated as:

ROC % (Q: Dec. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2017 ) + Invested Capital (Q: Dec. 2017 ))/ count )
=-19223.574 * ( 1 - 16.37% )/( (54328.33 + 52015.449)/ 2 )
=-16076.6749362/53171.8895
=-30.24 %

where

Invested Capital(Q: Jun. 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))
=49363.67 - 0 - ( 0 - max(0, 12334.667 - 7370.007+0))
=54328.33

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))
=42699.067 - 4154.675 - ( 147.777 - max(0, 17194.544 - 3723.487+147.777))
=52015.449

Note: The Operating Income data used here is two times the semi-annual (Dec. 2017) 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 -30.24% mean?
ARM Cement (NAI:ARM) has a ROC % of -30.24% as of Dec. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ARM Cement and its competitors.
Is ARM Cement's ROC % too high?
ARM Cement's current ROC % is -30.24%.
How does ARM Cement's ROC % compare to competitors?
ARM Cement's ROC % of -30.24% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.58. 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 Building Materials company?
The median ROC % among Building Materials companies is 3.58, based on 399 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 ARM Cement and its competitors. For the Building Materials industry, the median ROC % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Cement's current ROC % is -30.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Cement stock overvalued right now?
ARM Cement (NAI:ARM) has a current ROC % of -30.24%. The current ROC % is -30.24%. 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 ARM Cement (NAI:ARM), the current ROC % is -30.24% as of Dec. 2017. 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.

ARM Cement Business Description

Address The Westwood, Ring Road, 9th Floor, Westlands, Nairobi, KEN, 00100
ARM Cement PLC is a cement manufacturing company based in Kenya. The principal activities of the company and its subsidiaries are the manufacturing and selling of cement. In addition, the company is engaged in the mining and processing of industrial minerals and chemicals, trading in other building products and the sale of fertilisers. The company is organised into two principal operating division - Cement and Lime segment and Other Products. The company offers tiling cement, composite cement, portland cement, and clinker. The company predominantly carries out its operations in Kenya, Tanzania, South Africa and Rwanda. The majority of its revenue is derived from Kenya.