Magnolia Petroleum (LSE:MAGP) ROCE %: -256.62% (As of Jun. 2017)


What is Magnolia Petroleum ROCE %?

Magnolia Petroleum LSE:MAGP +50.00% ROCE % is -256.62% as of Jun. 2017. The stock has 6 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. Magnolia Petroleum's annualized ROCE % for the quarter that ended in Jun. 2017 was -256.62%.

Magnolia Petroleum  (LSE:MAGP) 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.

Magnolia Petroleum ROCE % Related Terms

Magnolia Petroleum ROCE % Historical Data

* Premium members only.

The historical data trend for Magnolia Petroleum'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.

Magnolia Petroleum ROCE % Chart

Magnolia Petroleum Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROCE %
Get a 7-Day Free Trial Premium Member Only -15.11 -1.96 11.40 -74.47 -26.25

Magnolia Petroleum Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -14.96 -124.30 35.21 -103.55 -256.62

Magnolia Petroleum ROCE % Calculation

Magnolia Petroleum's annualized ROCE % for the fiscal year that ended in Dec. 2016 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=-1.124/( ( (6.822 - 0.762) + (5.651 - 3.147) )/ 2 )
=-1.124/( (6.06+2.504)/ 2 )
=-1.124/4.282
=-26.25 %

Magnolia Petroleum's ROCE % of for the quarter that ended in Jun. 2017 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2017 )  (Q: Dec. 2016 )(Q: Jun. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2017 )  (Q: Dec. 2016 )(Q: Jun. 2017 )
=-4.002/( ( (5.651 - 3.147) + (3.855 - 3.24) )/ 2 )
=-4.002/( ( 2.504 + 0.615 )/ 2 )
=-4.002/1.5595
=-256.62 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2017) 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 -256.62% mean?
Magnolia Petroleum (LSE:MAGP) has a ROCE % of -256.62% as of Jun. 2017.
Is Magnolia Petroleum's ROCE % too high?
Magnolia Petroleum's current ROCE % is -256.62%.
How does Magnolia Petroleum's ROCE % compare to VNRRQ and GBEYF?
Magnolia Petroleum's ROCE % of -256.62% 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. Magnolia Petroleum's current ROCE % is -256.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Petroleum stock overvalued right now?
Magnolia Petroleum (LSE:MAGP) has a current ROCE % of -256.62%. The current ROCE % is -256.62%. 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 Magnolia Petroleum (LSE:MAGP), the current ROCE % is -256.62% as of Jun. 2017. 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.

Magnolia Petroleum Business Description

Industry EnergyOil & Gas
Address 19-21 Crawford Street, Suite 321, London, GBR, W1H 1PJ
Magnolia Petroleum PLC is an oil and gas production company. The company focuses on the acquisition, exploitation, and development of oil and gas properties located onshore in the United States. It has a diverse portfolio of revenue-generating assets including leases on the highly productive Bakken/Three Forks Sanish Formation in North Dakota and the proven Mississippi Lime and Woodford/Hunton oil formations in Oklahoma. It operates in two geographical areas, the United Kingdom and the United States of America.