African Potash (LSE:AFPO) ROCE % : -130.85% (As of Jun. 2016)

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What is African Potash ROCE %?

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. African Potash's annualized ROCE % for the quarter that ended in Jun. 2016 was -130.85%.

African Potash ROCE % Historical Data

The historical data trend for African Potash'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.

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African Potash ROCE % Chart

African Potash Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

ROCE %

-34.62

-15.34

-6.21

-72.67

-72.06

African Potash Semi-Annual Data
	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16
ROCE %	Get a 7-Day Free Trial				-5.93	-6.74	-123.75	-13.53	-130.85

African Potash ROCE % Calculation

African Potash's annualized ROCE % for the fiscal year that ended in Jun. 2016 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2016 )		(A: Jun. 2015 )		(A: Jun. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2016 )		(A: Jun. 2015 )		(A: Jun. 2016 )
	=	-4.194	/	( ( (6.934 - 0.854)	+	(7.415 - 1.854) )	/ 2 )
	=	-4.194	/	( (6.08	+	5.561)	/ 2 )
	=	-4.194	/	5.8205
	=	-72.06 %

African Potash's ROCE % of for the quarter that ended in Jun. 2016 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2016 )		(Q: Dec. 2015 )		(Q: Jun. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2016 )		(Q: Dec. 2015 )		(Q: Jun. 2016 )
	=	-7.532	/	( ( (7.664 - 1.713)	+	(7.415 - 1.854) )	/ 2 )
	=	-7.532	/	( ( 5.951	+	5.561 )	/ 2 )
	=	-7.532	/	5.756
	=	-130.85 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2016) EBIT data.

African Potash (LSE:AFPO) 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.

African Potash ROCE % Related Terms

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African Potash (LSE:AFPO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » African Potash Ltd (LSE:AFPO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Richmond House, St Julian's Avenue, St Peter Port, GGY, GY1 1GZ

Website

http://www.blockcommodities.com

Block Commodities Ltd is focused on building a platform for the mining, production, and distribution of fertilizer. The business operates through various segments that are Trading, which trades fertilizer; and Exploration, which explores potash properties. The company operates in one geographical segment that is Africa. It has one project namely the Lac Dinga project.

African Potash (LSE:AFPO) Headlines

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