Discovery Metals (ASX:DML) ROCE % : 24.92% (As of Jun. 2014)

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What is Discovery Metals 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. Discovery Metals's annualized ROCE % for the quarter that ended in Jun. 2014 was 24.92%.

Discovery Metals ROCE % Historical Data

The historical data trend for Discovery Metals'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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Discovery Metals ROCE % Chart

Discovery Metals Annual Data

Trend

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

ROCE %

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-10.31

-12.22

-7.03

-105.08

24.92

Discovery Metals Semi-Annual Data
	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
ROCE %	Get a 7-Day Free Trial						-10.31	-12.22	-7.03	-105.08	24.92

Discovery Metals ROCE % Calculation

Discovery Metals's annualized ROCE % for the fiscal year that ended in Jun. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2014 )		(A: Jun. 2013 )		(A: Jun. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2014 )		(A: Jun. 2013 )		(A: Jun. 2014 )
	=	32.941	/	( ( (274.085 - 194.844)	+	(214.641 - 29.552) )	/ 2 )
	=	32.941	/	( (79.241	+	185.089)	/ 2 )
	=	32.941	/	132.165
	=	24.92 %

Discovery Metals's ROCE % of for the quarter that ended in Jun. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2014 )		(Q: Jun. 2013 )		(Q: Jun. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2014 )		(Q: Jun. 2013 )		(Q: Jun. 2014 )
	=	32.941	/	( ( (274.085 - 194.844)	+	(214.641 - 29.552) )	/ 2 )
	=	32.941	/	( ( 79.241	+	185.089 )	/ 2 )
	=	32.941	/	132.165
	=	24.92 %

(1) Note: The EBIT data used here is one times the annual (Jun. 2014) EBIT data.

Discovery Metals (ASX:DML) 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.

Discovery Metals ROCE % Related Terms

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Discovery Metals (ASX:DML) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Discovery Metals Ltd (ASX:DML) » Definitions » ROCE %

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Address

Website

http://www.discoverymetals.com

Discovery Metals Limited (DML) is incorporated in Australia. It is engaged in nickel and copper exploration company. The company focuses on the exploration and development on its two major projects in Botswana being the Maun Copper Project and the Dikoloti Nickel Project.

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