African Eagle Resources (LSE:AFE) ROCE %: -39.40% (As of Jun. 2014)

What is African Eagle Resources ROCE %?

African Eagle Resources LSE:AFE ROCE % is -39.40% as of Jun. 2014. The stock has 2 warning signs investors should review.

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 Eagle Resources's annualized ROCE % for the quarter that ended in Jun. 2014 was -39.40%.

African Eagle Resources (LSE:AFE) 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 Eagle Resources ROCE % Related Terms

African Eagle Resources ROCE % Historical Data

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The historical data trend for African Eagle Resources'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.

African Eagle Resources ROCE % Chart

African Eagle Resources Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROCE %

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-5.66

-4.37

-8.17

-314.84

-157.74

African Eagle Resources Semi-Annual Data
	Dec04	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
ROCE %	Get a 7-Day Free Trial															-37.26	-408.25	-607.67	0.00	-39.40

African Eagle Resources ROCE % Calculation

African Eagle Resources'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 )
	=	-3.352	/	( ( (3.736 - 0.548)	+	(1.15 - 0.088) )	/ 2 )
	=	-3.352	/	( (3.188	+	1.062)	/ 2 )
	=	-3.352	/	2.125
	=	-157.74 %

African Eagle Resources'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 )
	=	-0.378	/	( ( (1.15 - 0.088)	+	(0.93 - 0.073) )	/ 2 )
	=	-0.378	/	( ( 1.062	+	0.857 )	/ 2 )
	=	-0.378	/	0.9595
	=	-39.40 %

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

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -39.40% mean?

African Eagle Resources (LSE:AFE) has a ROCE % of -39.40% as of Jun. 2014.

Is African Eagle Resources' ROCE % too high?

African Eagle Resources' current ROCE % is -39.40%.

How does African Eagle Resources' ROCE % compare to competitors?

African Eagle Resources' ROCE % of -39.40% 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 ROCE % for a Metals & Mining company?

A good ROCE % depends on the Metals & Mining industry context. 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. African Eagle Resources's current ROCE % is -39.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is African Eagle Resources stock overvalued right now?

African Eagle Resources (LSE:AFE) has a current ROCE % of -39.40%. The current ROCE % is -39.40%. 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 African Eagle Resources (LSE:AFE), the current ROCE % is -39.40% as of Jun. 2014. 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.

African Eagle Resources Business Description

Industry Basic Materials Metals & Mining

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Website http://www.africaneagle.co.uk

African Eagle Resources PLC was incorporated on January 19, 2000. The Company is engaged in the exploration and development of nickel. The Company's Investing Policy is to seek opportunities in the natural resources, infrastructure and services sectors located in all geographic regions. It has 10% free carried interest in the Dutwa nickel project in Tanzania. It also has a shareholding of 14.4% in Elephant Copper Ltd a BVI registered company, with interests in copper projects in Zambia.