TXO (LSE:TXO) ROCE %: -41.25% (As of Mar. 2014)


What is TXO ROCE %?

TXO LSE:TXO ROCE % is -41.25% as of Mar. 2014.

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. TXO's annualized ROCE % for the quarter that ended in Mar. 2014 was -41.25%.

TXO  (LSE:TXO) 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.

TXO ROCE % Related Terms

TXO ROCE % Historical Data

* Premium members only.

The historical data trend for TXO'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.

TXO ROCE % Chart

TXO Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Sep10 Sep11 Sep12 Sep13
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.89 -4.01 -13.18 -29.71 -101.30

TXO Semi-Annual Data
Sep03 Mar04 Sep04 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14
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 -38.64 -18.84 -35.70 -143.98 -41.25

TXO ROCE % Calculation

TXO's annualized ROCE % for the fiscal year that ended in Sep. 2013 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2013 )  (A: Sep. 2012 )(A: Sep. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2013 )  (A: Sep. 2012 )(A: Sep. 2013 )
=-1.904/( ( (2.546 - 0.541) + (2.225 - 0.471) )/ 2 )
=-1.904/( (2.005+1.754)/ 2 )
=-1.904/1.8795
=-101.30 %

TXO's ROCE % of for the quarter that ended in Mar. 2014 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2014 )  (Q: Sep. 2013 )(Q: Mar. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2014 )  (Q: Sep. 2013 )(Q: Mar. 2014 )
=-0.878/( ( (2.225 - 0.471) + (3.151 - 0.648) )/ 2 )
=-0.878/( ( 1.754 + 2.503 )/ 2 )
=-0.878/2.1285
=-41.25 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 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 -41.25% mean?
TXO (LSE:TXO) has a ROCE % of -41.25% as of Mar. 2014.
Is TXO's ROCE % too high?
TXO's current ROCE % is -41.25%.
How does TXO's ROCE % compare to competitors?
TXO's ROCE % of -41.25% can be compared against companies in the Oil & Gas industry. The industry median ROCE % is 6.85. 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 6.85, based on 981 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 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TXO's current ROCE % is -41.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TXO stock overvalued right now?
TXO (LSE:TXO) has a current ROCE % of -41.25%. The current ROCE % is -41.25%. 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 TXO (LSE:TXO), the current ROCE % is -41.25% as of Mar. 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.

TXO Business Description

Industry EnergyOil & Gas
TXO PLC is a public company, incorporated on June 26, 1989. The Company is engaged in holding investments operating in the oil and gas sector. The Company's operations are subject to laws and regulations relating to the protection of human health and safety and the environment.