TPG Telecom (ASX:TPG) ROCE % : 2.08% (As of Dec. 2023)

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What is TPG Telecom 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. TPG Telecom's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.08%.

TPG Telecom ROCE % Historical Data

The historical data trend for TPG Telecom'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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TPG Telecom ROCE % Chart

TPG Telecom Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Dec20

Dec21

Dec22

Dec23

ROCE %

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6.84

-0.67

0.96

3.21

0.40

TPG Telecom Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															0.61	0.96	5.48	0.86	2.08

TPG Telecom ROCE % Calculation

TPG Telecom's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	72	/	( ( (19366 - 1732)	+	(19668 - 1722) )	/ 2 )
	=	72	/	( (17634	+	17946)	/ 2 )
	=	72	/	17790
	=	0.40 %

TPG Telecom's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	352	/	( ( (19366 - 3536)	+	(19668 - 1722) )	/ 2 )
	=	352	/	( ( 15830	+	17946 )	/ 2 )
	=	352	/	16888
	=	2.08 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

TPG Telecom (ASX:TPG) 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.

TPG Telecom ROCE % Related Terms

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TPG Telecom (ASX:TPG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » TPG Telecom Ltd (ASX:TPG) » Definitions » ROCE %

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Address

177 Pacific Highway, Level 1, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.tpgtelecom.com.au

TPG Telecom is Australia's third-largest integrated telecom services company. It offers broadband, telephony, mobile, enterprise communications, and networking solutions catering to all market segments (consumer, small business, corporate and wholesale, government). The group has grown materially since 2008, both via organic growth and acquisitions, and in July 2020 merged with Vodafone Australia. It owns an extensive stable of infrastructure assets.