African Minerals (African Minerals) ROCE % : 6.66% (As of Jun. 2014)

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What is African Minerals ROCE %?

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. African Minerals's annualized ROCE % for the quarter that ended in Jun. 2014 was 6.66%.

African Minerals ROCE % Historical Data

The historical data trend for African Minerals'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.

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African Minerals ROCE % Chart

African Minerals Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROCE %

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-10.13

-6.15

-3.73

2.91

2.50

African Minerals Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
ROCE %	Get a 7-Day Free Trial				-15.25	13.76	4.53	0.51	6.66

African Minerals ROCE % Calculation

African Minerals's annualized ROCE % for the fiscal year that ended in Dec. 2013 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2013 )		(A: Dec. 2012 )		(A: Dec. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2013 )		(A: Dec. 2012 )		(A: Dec. 2013 )
	=	50.4	/	( ( (3287.3 - 1400.2)	+	(3234.7 - 1093) )	/ 2 )
	=	50.4	/	( (1887.1	+	2141.7)	/ 2 )
	=	50.4	/	2014.4
	=	2.50 %

African Minerals's ROCE % of for the quarter that ended in Jun. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2014 )		(Q: Dec. 2013 )		(Q: Jun. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2014 )		(Q: Dec. 2013 )		(Q: Jun. 2014 )
	=	142.2	/	( ( (3234.7 - 1093)	+	(3152.6 - 1023.1) )	/ 2 )
	=	142.2	/	( ( 2141.7	+	2129.5 )	/ 2 )
	=	142.2	/	2135.6
	=	6.66 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2014) EBIT data.

African Minerals (GREY:AMLZF) 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.

African Minerals ROCE % Related Terms

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African Minerals (African Minerals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » African Minerals Ltd (GREY:AMLZF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Stratton House, 5 Stratton Street, London, GBR, W1J 8LA

Website

http://www.african-minerals.com

African Minerals Ltd is a mineral exploration and development company. It is engaged in the development, design, construction, and operation of iron ore deposit at Tonkolili, Sierra Leone, and its related rail and port infrastructure. In addition, it is also involved in the marketing and sale of the iron ore produced from this project.

African Minerals (African Minerals) Headlines

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