AEDC (American Energy Development) ROCE %: -11.36% (As of Sep. 2013)

What is American Energy Development ROCE %?

American Energy Development AEDC -99.95% ROCE % is -11.36% as of Sep. 2013.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. American Energy Development's annualized ROCE % for the quarter that ended in Sep. 2013 was -11.36%.

American Energy Development (OTCPK:AEDC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

American Energy Development ROCE % Related Terms

American Energy Development ROCE % Historical Data

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The historical data trend for American Energy Development's ROCE % 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.

American Energy Development ROCE % Chart

American Energy Development Annual Data

Trend

Jun11

Jun12

Jun13

ROCE %

-10.28

-21.42

-196.92

American Energy Development Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROCE %	Get a 7-Day Free Trial								-3.87	-669.92	-114.49	-548.19	-11.36

American Energy Development ROCE % Calculation

American Energy Development's annualized ROCE % for the fiscal year that ended in Jun. 2013 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2013 )		(A: Jun. 2012 )		(A: Jun. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2013 )		(A: Jun. 2012 )		(A: Jun. 2013 )
	=	-13.855	/	( ( (14.106 - 0.212)	+	(0.428 - 0.25) )	/ 2 )
	=	-13.855	/	( (13.894	+	0.178)	/ 2 )
	=	-13.855	/	7.036
	=	-196.92 %

American Energy Development's ROCE % of for the quarter that ended in Sep. 2013 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2013 )		(Q: Jun. 2013 )		(Q: Sep. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2013 )		(Q: Jun. 2013 )		(Q: Sep. 2013 )
	=	-0.02	/	( ( (0.428 - 0.25)	+	(0.428 - 0.254) )	/ 2 )
	=	-0.02	/	( ( 0.178	+	0.174 )	/ 2 )
	=	-0.02	/	0.176
	=	-11.36 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2013) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -11.36% mean?

American Energy Development (AEDC) has a ROCE % of -11.36% as of Sep. 2013.

Is American Energy Development's ROCE % too high?

American Energy Development's current ROCE % is -11.36%.

How does American Energy Development's ROCE % compare to BRZV and CWLXF?

American Energy Development's ROCE % of -11.36% can be compared against companies in the Oil & Gas industry. The industry median ROCE % is 6.79. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Oil & Gas company?

The median ROCE % among Oil & Gas companies is 6.79, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Oil & Gas industry, the median ROCE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Energy Development's current ROCE % is -11.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is American Energy Development stock overvalued right now?

American Energy Development (AEDC) has a current ROCE % of -11.36%. The current ROCE % is -11.36%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For American Energy Development (AEDC), the current ROCE % is -11.36% as of Sep. 2013. 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.

American Energy Development Business Description

Industry Energy Oil & Gas

Comparable Companies BRZV CWLXF UNIGF JKXOY AKVA BYIN IFNY GDPMQ GPIPF EMPR HEXPF DRKOF UERLF PTRDF ARSLF DBRM ALTX EXNT CNENF EMBYF

Address 1230 Avenue of the Americas, 7th Floor, New York, NY, USA, 10020

Website http://www.aed-corp.com

American Energy Development Corp is an independent USA energy company. It intends to locate, drill, and produce oil and gas in the USA and secure regions. The company is focused on the development of Niagaran oil reefs in Michigan and the underexplored onshore basins in the UK.