Frontier Mining (LSE:FML) ROCE %: 1.59% (As of Sep. 2014)


What is Frontier Mining ROCE %?

Frontier Mining LSE:FML -16.67% ROCE % is 1.59% as of Sep. 2014. 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. Frontier Mining's annualized ROCE % for the quarter that ended in Sep. 2014 was 1.59%.

Frontier Mining  (LSE:FML) 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.

Frontier Mining ROCE % Related Terms

Frontier Mining ROCE % Historical Data

* Premium members only.

The historical data trend for Frontier Mining'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.

Frontier Mining ROCE % Chart

Frontier Mining Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROCE %
Get a 7-Day Free Trial Premium Member Only -101.79 -40.36 23.24 -2.01 -1.03

Frontier Mining Quarterly Data
Dec09 Jun10 Dec10 Jun11 Dec11 Dec12 Jun13 Sep13 Dec13 Jun14 Sep14
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 0.00 -1.15 -1.67 -29.30 1.59

Frontier Mining ROCE % Calculation

Frontier Mining'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 )
=-1.57/( ( (175.129 - 26.723) + (186.625 - 31.184) )/ 2 )
=-1.57/( (148.406+155.441)/ 2 )
=-1.57/151.9235
=-1.03 %

Frontier Mining's ROCE % of for the quarter that ended in Sep. 2014 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=2.272/( ( (175.516 - 35.888) + (176.513 - 30.416) )/ 2 )
=2.272/( ( 139.628 + 146.097 )/ 2 )
=2.272/142.8625
=1.59 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2014) 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 1.59% mean?
Frontier Mining (LSE:FML) has a ROCE % of 1.59% as of Sep. 2014.
Is Frontier Mining's ROCE % too high?
Frontier Mining's current ROCE % is 1.59%.
How does Frontier Mining's ROCE % compare to competitors?
Frontier Mining's ROCE % of 1.59% 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. Frontier Mining's current ROCE % is 1.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Mining stock overvalued right now?
Frontier Mining (LSE:FML) has a current ROCE % of 1.59%. The current ROCE % is 1.59%. 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 Frontier Mining (LSE:FML), the current ROCE % is 1.59% as of Sep. 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.

Frontier Mining Business Description

Frontier Mining Ltd was incorporated under the law of the state of Delaware on 5 August 1998. It is engaged in mineral exploration and development. It explores and develops gold and copper deposits in the Republic of Kazakhstan. Its activities currently relate to two licenses: the wholly owned Naimanjal contract license area and the 50% owned Benkala joint venture license.