African Copper (LSE:ACU) ROIC %: -1.67% (As of Sep. 2014)


What is African Copper ROIC %?

African Copper LSE:ACU +10.00% ROIC % is -1.67% as of Sep. 2014. The stock has 4 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. African Copper's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2014 was -1.67%.

As of today (2026-06-28), African Copper's WACC % is 0.00%. African Copper's ROIC % is 0.00% (calculated using TTM income statement data). African Copper earns returns that do not match up to its cost of capital. It will destroy value as it grows.

African Copper  (LSE:ACU) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, African Copper's WACC % is 0.00%. African Copper's ROIC % is 0.00% (calculated using TTM income statement data). African Copper earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

African Copper ROIC % Related Terms

African Copper ROIC % Historical Data

* Premium members only.

The historical data trend for African Copper's ROIC % 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.

African Copper ROIC % Chart

African Copper Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Mar11 Mar12 Mar13 Mar14
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -14.16 -3.00 -33.49 7.20 -31.22

African Copper Semi-Annual Data
Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
ROIC % 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 1.07 13.71 -71.40 7.51 -1.67

African Copper ROIC % Competitor Comparison

For the Copper subindustry, African Copper's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

African Copper ROIC % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, African Copper's ROIC % distribution charts can be found below:

* The bar in red indicates where African Copper's ROIC % falls into.


African Copper ROIC % Calculation

African Copper's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2014 is calculated as:

ROIC % (A: Mar. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2013 ) + Invested Capital (A: Mar. 2014 ))/ count )
=-12.514 * ( 1 - 0% )/( (48.177 + 32.002)/ 2 )
=-12.514/40.0895
=-31.22 %

where

Invested Capital(A: Mar. 2013 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=59.142 - 68.259 - ( 1.634 - max(0, 68.279 - 10.985+1.634))
=48.177

Invested Capital(A: Mar. 2014 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=41.368 - 67.72 - ( 2.627 - max(0, 69.074 - 10.72+2.627))
=32.002

African Copper's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2014 is calculated as:

ROIC % (Q: Sep. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2014 ) + Invested Capital (Q: Sep. 2014 ))/ count )
=-0.6 * ( 1 - 0% )/( (32.002 + 39.684)/ 2 )
=-0.6/35.843
=-1.67 %

where

Invested Capital(Q: Mar. 2014 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=41.368 - 67.72 - ( 2.627 - max(0, 69.074 - 10.72+2.627))
=32.002

Invested Capital(Q: Sep. 2014 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=47.298 - 72.408 - ( 1.41 - max(0, 74.312 - 9.518+1.41))
=39.684

Note: The Operating Income data used here is two times the semi-annual (Sep. 2014) data. The tax rate is limited to between 0% and 100%.

* 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 ROIC % →
What does a ROIC % of -1.67% mean?
African Copper (LSE:ACU) has a ROIC % of -1.67% as of Sep. 2014. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on African Copper and its competitors.
Is African Copper's ROIC % too high?
African Copper's current ROIC % is -1.67%.
How does African Copper's ROIC % compare to competitors?
African Copper's ROIC % of -1.67% 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 ROIC % for a Metals & Mining company?
A good ROIC % depends on the Metals & Mining industry context. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on African Copper and its competitors. African Copper's current ROIC % is -1.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Copper stock overvalued right now?
African Copper (LSE:ACU) has a current ROIC % of -1.67%. The current ROIC % is -1.67%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For African Copper (LSE:ACU), the current ROIC % is -1.67% 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.

African Copper Business Description

African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.