Edge Resources (LSE:EDG) ROCE %: -738.66% (As of Dec. 2015)

What is Edge Resources ROCE %?

Edge Resources LSE:EDG ROCE % is -738.66% as of Dec. 2015. The stock has 5 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. Edge Resources's annualized ROCE % for the quarter that ended in Dec. 2015 was -738.66%.

Edge Resources (LSE:EDG) 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.

Edge Resources ROCE % Related Terms

Edge Resources ROCE % Historical Data

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The historical data trend for Edge 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.

Edge Resources ROCE % Chart

Edge Resources Annual Data

Trend

Mar01

Mar02

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

ROCE %

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-16.42

-10.57

-27.98

-2.74

-38.59

Edge Resources Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
ROCE %	Get a 7-Day Free Trial															-50.35	-108.71	-8.68	-16.48	-738.66

Edge Resources ROCE % Calculation

Edge Resources's annualized ROCE % for the fiscal year that ended in Mar. 2015 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2015 )		(A: Mar. 2014 )		(A: Mar. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2015 )		(A: Mar. 2014 )		(A: Mar. 2015 )
	=	-5.508	/	( ( (21.339 - 4.91)	+	(16.696 - 4.58) )	/ 2 )
	=	-5.508	/	( (16.429	+	12.116)	/ 2 )
	=	-5.508	/	14.2725
	=	-38.59 %

Edge Resources's ROCE % of for the quarter that ended in Dec. 2015 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2015 )		(Q: Sep. 2015 )		(Q: Dec. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2015 )		(Q: Sep. 2015 )		(Q: Dec. 2015 )
	=	-40.172	/	( ( (14.938 - 4.5)	+	(5.057 - 4.618) )	/ 2 )
	=	-40.172	/	( ( 10.438	+	0.439 )	/ 2 )
	=	-40.172	/	5.4385
	=	-738.66 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2015) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -738.66% mean?

Edge Resources (LSE:EDG) has a ROCE % of -738.66% as of Dec. 2015.

Is Edge Resources' ROCE % too high?

Edge Resources' current ROCE % is -738.66%.

How does Edge Resources' ROCE % compare to GDPMQ and OOIL?

Edge Resources' ROCE % of -738.66% 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. Edge Resources's current ROCE % is -738.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Edge Resources stock overvalued right now?

Edge Resources (LSE:EDG) has a current ROCE % of -738.66%. The current ROCE % is -738.66%. 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 Edge Resources (LSE:EDG), the current ROCE % is -738.66% as of Dec. 2015. 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.

Edge Resources Business Description

Industry Energy Oil & Gas

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Address Elveden House, 717 - 7th Avenue SW, Suite 1400, Calgary, AB, CAN, T2P 0Z3

Website http://www.edgeres.com

Edge Resources Inc is engaged in the acquisition, exploration, development, and production of oil and natural gas in Alberta and Saskatchewan, Canada. Its projects include Grand Forks, Willesden Green North, and Primate.