The Environmental Group (ASX:EGL) ROCE % : 15.23% (As of Dec. 2023)

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What is The Environmental Group 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. The Environmental Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.23%.

The Environmental Group ROCE % Historical Data

The historical data trend for The Environmental Group'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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The Environmental Group ROCE % Chart

The Environmental Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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7.82

-8.40

8.33

8.96

11.41

The Environmental Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															9.68	7.47	13.14	11.63	15.23

The Environmental Group ROCE % Calculation

The Environmental Group's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	3.989	/	( ( (45.132 - 16.301)	+	(66.667 - 25.605) )	/ 2 )
	=	3.989	/	( (28.831	+	41.062)	/ 2 )
	=	3.989	/	34.9465
	=	11.41 %

The Environmental Group'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 )
	=	6.414	/	( ( (66.667 - 25.605)	+	(65.722 - 22.535) )	/ 2 )
	=	6.414	/	( ( 41.062	+	43.187 )	/ 2 )
	=	6.414	/	42.1245
	=	15.23 %

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

The Environmental Group (ASX:EGL) 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.

The Environmental Group ROCE % Related Terms

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The Environmental Group (ASX:EGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » The Environmental Group Ltd (ASX:EGL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Ferntree Place, Level 1 ,Suite 1.01, Notting Hill, Melbourne, VIC, AUS, 3168

Website

https://www.environmental.com.au

The Environmental Group Ltd is a facility service and environmental solutions company. Its principal activities are design, application, and servicing of innovative gas and vapor emission control systems, inlet and exhaust systems for gas turbines and engineering services, and innovative water treatment, service, and maintenance of commercial boilers and engineering services, to a wide variety of industries. It has following segments: Products Pollution Control, EGL Energy; Products Gas Turbine; EGL Waste and others. The company generates maximum revenue from the EGL Energy segment.