WG Wearne (JSE:WEA) ROCE % : 45.25% (As of Aug. 2017)

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What is WG Wearne 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. WG Wearne's annualized ROCE % for the quarter that ended in Aug. 2017 was 45.25%.

WG Wearne ROCE % Historical Data

The historical data trend for WG Wearne'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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WG Wearne ROCE % Chart

WG Wearne Annual Data

Trend

Feb08

Feb09

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

ROCE %

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2.35

14.46

6.64

0.88

-5.04

WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
ROCE %	Get a 7-Day Free Trial															8.40	-7.80	9.54	-26.33	45.25

WG Wearne ROCE % Calculation

WG Wearne's annualized ROCE % for the fiscal year that ended in Feb. 2017 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2017 )		(A: Feb. 2016 )		(A: Feb. 2017 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2017 )		(A: Feb. 2016 )		(A: Feb. 2017 )
	=	-6.583	/	( ( (403.205 - 212.922)	+	(341.304 - 270.132) )	/ 2 )
	=	-6.583	/	( (190.283	+	71.172)	/ 2 )
	=	-6.583	/	130.7275
	=	-5.04 %

WG Wearne's ROCE % of for the quarter that ended in Aug. 2017 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Aug. 2017 )		(Q: Feb. 2017 )		(Q: Aug. 2017 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Aug. 2017 )		(Q: Feb. 2017 )		(Q: Aug. 2017 )
	=	28.814	/	( ( (341.304 - 270.132)	+	(328.591 - 272.421) )	/ 2 )
	=	28.814	/	( ( 71.172	+	56.17 )	/ 2 )
	=	28.814	/	63.671
	=	45.25 %

(1) Note: The EBIT data used here is two times the semi-annual (Aug. 2017) EBIT data.

WG Wearne (JSE:WEA) 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.

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WG Wearne (JSE:WEA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WG Wearne Ltd (JSE:WEA) » Definitions » ROCE %

Comparable Companies

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N/A

Address

300 Acacia Road, Stonemill Office Park, P.O Box 1674, 3 Kiepersol House, Cresta, ZAF, 2118

Website

http://www.wearne.co.za

WG Wearne Ltd is a supplier of materials and contracting services to the building and construction industry with a complete building material solution. The company is involved in various big construction projects such as the construction of Rand Afrikaans University, the Western Bypass, the Lesotho Highlands Water Scheme, Soccer City and FNB in Fairlands Johannesburg. It operates across South Africa with concentrated operations in Limpopo and Gauteng provinces. its products include sub base materials, concrete stone, road stone, dump rock, ballast stone, crusher sand, building sand, builders mix, plaster sand, generic concrete range, Wearne specialty concrete, high-performance concrete, base course materials and sub base materials.