Dragon Oil (LSE:DGO) ROCE % : 9.33% (As of Jun. 2015)

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What is Dragon Oil 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. Dragon Oil's annualized ROCE % for the quarter that ended in Jun. 2015 was 9.33%.

Dragon Oil ROCE % Historical Data

The historical data trend for Dragon Oil'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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Dragon Oil ROCE % Chart

Dragon Oil Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROCE %

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25.02

35.11

27.24

21.28

16.09

Dragon Oil Semi-Annual Data
	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
ROCE %	Get a 7-Day Free Trial								21.32	21.39	22.01	10.13	9.33

Dragon Oil ROCE % Calculation

Dragon Oil's annualized ROCE % for the fiscal year that ended in Dec. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2014 )		(A: Dec. 2013 )		(A: Dec. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2014 )		(A: Dec. 2013 )		(A: Dec. 2014 )
	=	369.736	/	( ( (2681.682 - 598.132)	+	(3169.476 - 656.819) )	/ 2 )
	=	369.736	/	( (2083.55	+	2512.657)	/ 2 )
	=	369.736	/	2298.1035
	=	16.09 %

Dragon Oil's ROCE % of for the quarter that ended in Jun. 2015 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2015 )		(Q: Dec. 2014 )		(Q: Jun. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2015 )		(Q: Dec. 2014 )		(Q: Jun. 2015 )
	=	237.136	/	( ( (3169.476 - 656.819)	+	(3163.354 - 591.27) )	/ 2 )
	=	237.136	/	( ( 2512.657	+	2572.084 )	/ 2 )
	=	237.136	/	2542.3705
	=	9.33 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2015) EBIT data.

Dragon Oil (LSE:DGO) 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.

Dragon Oil ROCE % Related Terms

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Dragon Oil (LSE:DGO) Business Description

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http://www.dragonoil.com

Dragon Oil PLC is an independent oil and gas exploration, development and production company. The Company's producing asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. It has exploration blocks offshore Tunisia (the Bargou Exploration Permit), in Iraq (Block 9), Afghanistan (Sanduqli and Mazar-i-Sharif blocks), offshore the Philippines (Service Contract 63) in partnership with other companies and Block 19 in Egypt. The Company develops the hydrocarbon reserves in the Cheleken Contract Area in accordance with the terms of the Production Sharing Agreement (PSA). As at 31 December 2014 the Company had probably oil reserves of 663 million barrels of oil and condensate, gas 2P reserves and contingent gas resources of c. 2.7 TCF. The Bargou Exploration Permit contains prospective resources, while Block 9, Sanduqli and Mazar-i-Sharif blocks and Block 19 are at an early stage of exploration. The Company is subject to the international laws and regulations that it operates in.

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