ARM Cement (NAI:ARM) ROCE %: -71.21% (As of Dec. 2017)


What is ARM Cement ROCE %?

ARM Cement NAI:ARM ROCE % is -71.21% as of Dec. 2017.

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. ARM Cement's annualized ROCE % for the quarter that ended in Dec. 2017 was -71.21%.

ARM Cement  (NAI:ARM) 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.

ARM Cement ROCE % Related Terms

ARM Cement ROCE % Historical Data

* Premium members only.

The historical data trend for ARM Cement'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.

ARM Cement ROCE % Chart

ARM Cement Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.40 10.55 -4.81 -2.82 -18.54

ARM Cement Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17
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 -10.23 43.01 -45.42 28.93 -71.21

ARM Cement ROCE % Calculation

ARM Cement's annualized ROCE % for the fiscal year that ended in Dec. 2017 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2017 )  (A: Dec. 2016 )(A: Dec. 2017 )
=-5784.869/( ( (51058.802 - 14159.435) + (42699.067 - 17194.544) )/ 2 )
=-5784.869/( (36899.367+25504.523)/ 2 )
=-5784.869/31201.945
=-18.54 %

ARM Cement's ROCE % of for the quarter that ended in Dec. 2017 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2017 )  (Q: Jun. 2017 )(Q: Dec. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2017 )  (Q: Jun. 2017 )(Q: Dec. 2017 )
=-22264.712/( ( (49363.67 - 12334.667) + (42699.067 - 17194.544) )/ 2 )
=-22264.712/( ( 37029.003 + 25504.523 )/ 2 )
=-22264.712/31266.763
=-71.21 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 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 -71.21% mean?
ARM Cement (NAI:ARM) has a ROCE % of -71.21% as of Dec. 2017.
Is ARM Cement's ROCE % too high?
ARM Cement's current ROCE % is -71.21%.
How does ARM Cement's ROCE % compare to competitors?
ARM Cement's ROCE % of -71.21% can be compared against companies in the Building Materials industry. The industry median ROCE % is 6.00. 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 Building Materials company?
The median ROCE % among Building Materials companies is 6.00, based on 406 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 Building Materials industry, the median ROCE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARM Cement's current ROCE % is -71.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARM Cement stock overvalued right now?
ARM Cement (NAI:ARM) has a current ROCE % of -71.21%. The current ROCE % is -71.21%. 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 ARM Cement (NAI:ARM), the current ROCE % is -71.21% as of Dec. 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.

ARM Cement Business Description

Address The Westwood, Ring Road, 9th Floor, Westlands, Nairobi, KEN, 00100
ARM Cement PLC is a cement manufacturing company based in Kenya. The principal activities of the company and its subsidiaries are the manufacturing and selling of cement. In addition, the company is engaged in the mining and processing of industrial minerals and chemicals, trading in other building products and the sale of fertilisers. The company is organised into two principal operating division - Cement and Lime segment and Other Products. The company offers tiling cement, composite cement, portland cement, and clinker. The company predominantly carries out its operations in Kenya, Tanzania, South Africa and Rwanda. The majority of its revenue is derived from Kenya.