Balfour Beatty (LSE:BBY) ROCE % : 15.90% (As of Dec. 2023)

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What is Balfour Beatty 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. Balfour Beatty's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.90%.

Balfour Beatty ROCE % Historical Data

The historical data trend for Balfour Beatty'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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Balfour Beatty ROCE % Chart

Balfour Beatty Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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6.94

3.10

5.11

13.24

11.52

Balfour Beatty 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															6.16	7.60	18.53	7.81	15.90

Balfour Beatty ROCE % Calculation

Balfour Beatty'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 )
	=	285	/	( ( (5123 - 2722)	+	(5265 - 2719) )	/ 2 )
	=	285	/	( (2401	+	2546)	/ 2 )
	=	285	/	2473.5
	=	11.52 %

Balfour Beatty'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 )
	=	386	/	( ( (5020 - 2711)	+	(5265 - 2719) )	/ 2 )
	=	386	/	( ( 2309	+	2546 )	/ 2 )
	=	386	/	2427.5
	=	15.90 %

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

Balfour Beatty (LSE:BBY) 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.

Balfour Beatty ROCE % Related Terms

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Balfour Beatty (LSE:BBY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Balfour Beatty PLC (LSE:BBY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

BAFYY:USA BAFBF:USA BBYl:UK BIH:Germany

Address

5 Churchill Place, Canary Wharf, London, GBR, E14 5HU

Website

https://www.balfourbeatty.com

Balfour Beatty PLC finances, builds, and maintains infrastructure projects. It develops projects in energy, water, communications, transportation, and other industrial markets. In addition, the company manages construction businesses and provides maintenance and management services in power transmission, utilities infrastructure, road, and rail. Some projects are granted through concessions by government authorities. Balfour Beatty operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets when there are opportunities to manage the projects upon completion and create recurring revenue. The majority of sales are derived from the United Kingdom and the United States.