Gemfields (LSE:GEMA) ROCE %: -8.19% (As of Dec. 2016)


What is Gemfields ROCE %?

Gemfields LSE:GEMA ROCE % is -8.19% as of Dec. 2016. The stock has 4 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. Gemfields's annualized ROCE % for the quarter that ended in Dec. 2016 was -8.19%.

Gemfields  (LSE:GEMA) 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.

Gemfields ROCE % Related Terms

Gemfields ROCE % Historical Data

* Premium members only.

The historical data trend for Gemfields'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.

Gemfields ROCE % Chart

Gemfields Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 152.11 -6.05 9.90 7.92 12.24

Gemfields Semi-Annual Data
Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.33 -8.14 12.21 11.39 -8.19

Gemfields ROCE % Calculation

Gemfields'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 )
=32.34/( ( (299.967 - 49.569) + (335.067 - 56.944) )/ 2 )
=32.34/( (250.398+278.123)/ 2 )
=32.34/264.2605
=12.24 %

Gemfields's ROCE % of for the quarter that ended in Dec. 2016 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2016 )  (Q: Jun. 2016 )(Q: Dec. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2016 )  (Q: Jun. 2016 )(Q: Dec. 2016 )
=-23.024/( ( (335.067 - 56.944) + (359.152 - 74.732) )/ 2 )
=-23.024/( ( 278.123 + 284.42 )/ 2 )
=-23.024/281.2715
=-8.19 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 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 -8.19% mean?
Gemfields (LSE:GEMA) has a ROCE % of -8.19% as of Dec. 2016.
Is Gemfields' ROCE % too high?
Gemfields' current ROCE % is -8.19%.
How does Gemfields' ROCE % compare to competitors?
Gemfields' ROCE % of -8.19% 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. Gemfields's current ROCE % is -8.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemfields stock overvalued right now?
Gemfields (LSE:GEMA) has a current ROCE % of -8.19%. The current ROCE % is -8.19%. 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 Gemfields (LSE:GEMA), the current ROCE % is -8.19% as of Dec. 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.

Gemfields Business Description

Address St Julian’s Avenue, Royal Chambers, PO Box 186, Saint Peter Port, GGY, W1S 2HR
Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.