African Potash (LSE:AFPO) ROCE %: -130.85% (As of Jun. 2016)

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What is African Potash ROCE %?

African Potash LSE:AFPO +20.00% ROCE % is -130.85% as of Jun. 2016. The stock has 3 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 Potash's annualized ROCE % for the quarter that ended in Jun. 2016 was -130.85%.

African Potash  (LSE:AFPO) 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 Potash ROCE % Related Terms

African Potash ROCE % Historical Data

* Premium members only.

The historical data trend for African Potash'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 Potash ROCE % Chart

African Potash Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16
ROCE %
-34.62 -15.34 -6.21 -72.67 -72.06

African Potash Semi-Annual Data
Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16
ROCE % Get a 7-Day Free Trial Premium Member Only -5.93 -6.74 -123.75 -13.53 -130.85

African Potash ROCE % Calculation

African Potash's annualized ROCE % for the fiscal year that ended in Jun. 2016 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2016 )  (A: Jun. 2015 )(A: Jun. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2016 )  (A: Jun. 2015 )(A: Jun. 2016 )
=-4.194/( ( (6.934 - 0.854) + (7.415 - 1.854) )/ 2 )
=-4.194/( (6.08+5.561)/ 2 )
=-4.194/5.8205
=-72.06 %

African Potash's ROCE % of for the quarter that ended in Jun. 2016 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2016 )  (Q: Dec. 2015 )(Q: Jun. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2016 )  (Q: Dec. 2015 )(Q: Jun. 2016 )
=-7.532/( ( (7.664 - 1.713) + (7.415 - 1.854) )/ 2 )
=-7.532/( ( 5.951 + 5.561 )/ 2 )
=-7.532/5.756
=-130.85 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2016) EBIT data.

* 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 ROCE % →
What does a ROCE % of -130.85% mean?
African Potash (LSE:AFPO) has a ROCE % of -130.85% as of Jun. 2016.
Is African Potash's ROCE % too high?
African Potash's current ROCE % is -130.85%.
How does African Potash's ROCE % compare to RKDA and VEGL?
African Potash's ROCE % of -130.85% can be compared against companies in the Agriculture industry. The industry median ROCE % is 9.39. 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 Agriculture company?
The median ROCE % among Agriculture companies is 9.39, based on 254 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 Agriculture industry, the median ROCE % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Potash's current ROCE % is -130.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Potash stock overvalued right now?
African Potash (LSE:AFPO) has a current ROCE % of -130.85%. The current ROCE % is -130.85%. 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 Potash (LSE:AFPO), the current ROCE % is -130.85% as of Jun. 2016. 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 Potash Business Description

Address Richmond House, St Julian's Avenue, St Peter Port, GGY, GY1 1GZ
Block Commodities Ltd is focused on building a platform for the mining, production, and distribution of fertilizer. The business operates through various segments that are Trading, which trades fertilizer; and Exploration, which explores potash properties. The company operates in one geographical segment that is Africa. It has one project namely the Lac Dinga project.