Max Petroleum (LSE:MXP) ROCE %: 4.88% (As of Sep. 2014)


What is Max Petroleum ROCE %?

Max Petroleum LSE:MXP ROCE % is 4.88% as of Sep. 2014. 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. Max Petroleum's annualized ROCE % for the quarter that ended in Sep. 2014 was 4.88%.

Max Petroleum  (LSE:MXP) 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.

Max Petroleum ROCE % Related Terms

Max Petroleum ROCE % Historical Data

* Premium members only.

The historical data trend for Max 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.

Max Petroleum ROCE % Chart

Max Petroleum Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
ROCE %
Get a 7-Day Free Trial Premium Member Only -114.01 -4.72 -3.02 3.53 -32.92

Max Petroleum Semi-Annual Data
Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
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 7.45 1.17 -1.09 -66.51 4.88

Max Petroleum ROCE % Calculation

Max Petroleum's annualized ROCE % for the fiscal year that ended in Mar. 2014 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2014 )  (A: Mar. 2013 )(A: Mar. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2014 )  (A: Mar. 2013 )(A: Mar. 2014 )
=-36.95/( ( (201.033 - 62.336) + (163.654 - 77.874) )/ 2 )
=-36.95/( (138.697+85.78)/ 2 )
=-36.95/112.2385
=-32.92 %

Max Petroleum'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: Mar. 2014 )(Q: Sep. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2014 )  (Q: Mar. 2014 )(Q: Sep. 2014 )
=5.108/( ( (163.654 - 77.874) + (165.139 - 41.652) )/ 2 )
=5.108/( ( 85.78 + 123.487 )/ 2 )
=5.108/104.6335
=4.88 %

(1) Note: The EBIT data used here is two times the semi-annual (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 4.88% mean?
Max Petroleum (LSE:MXP) has a ROCE % of 4.88% as of Sep. 2014.
Is Max Petroleum's ROCE % too high?
Max Petroleum's current ROCE % is 4.88%. The Oil & Gas industry median ROCE % is 6.79. Max Petroleum's value of 4.88% is 28.1% below this industry median.
How does Max Petroleum's ROCE % compare to competitors?
Max Petroleum's ROCE % of 4.88% can be compared against companies in the Oil & Gas industry. The industry median ROCE % is 6.79. Max Petroleum's value of 4.88% is 28.1% below this benchmark. 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. Max Petroleum's current ROCE % of 4.88% is 28.1% below the industry median. 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. Max Petroleum's current ROCE % is 4.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Petroleum stock overvalued right now?
Max Petroleum (LSE:MXP) has a current ROCE % of 4.88%. The current ROCE % is 4.88% and 28.1% below the Oil & Gas industry median of 6.79. 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 Max Petroleum (LSE:MXP), the current ROCE % is 4.88% 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.

Max Petroleum Business Description

Industry EnergyOil & Gas
Address 4th Floor, Ergon House, Dean Bradley Street, London, GBR, SW1P 2AL
Max Petroleum Plc is an independent oil and gas exploration and production company. The company is engaged in the business of exploration, development, and production of oil and gas assets within the Republic of Kazakhstan. The group owns the exploration and production rights to the Blocks A&E License, which comprises two onshore blocks extending over 12,455 km2 in the Pre-Caspian Basin in Western Kazakhstan.