Headlam Group (LSE:HEAD) ROCE % : 4.36% (As of Dec. 2023)

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What is Headlam 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. Headlam Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.36%.

Headlam Group ROCE % Historical Data

The historical data trend for Headlam 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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Headlam Group ROCE % Chart

Headlam Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.90

-4.03

10.62

16.25

4.65

Headlam 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															10.50	16.92	16.91	5.06	4.36

Headlam Group ROCE % Calculation

Headlam Group'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 )
	=	12.5	/	( ( (435.4 - 167.8)	+	(462.3 - 192.8) )	/ 2 )
	=	12.5	/	( (267.6	+	269.5)	/ 2 )
	=	12.5	/	268.55
	=	4.65 %

Headlam 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 )
	=	11.6	/	( ( (467.6 - 205.2)	+	(462.3 - 192.8) )	/ 2 )
	=	11.6	/	( ( 262.4	+	269.5 )	/ 2 )
	=	11.6	/	265.95
	=	4.36 %

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

Headlam Group (LSE:HEAD) 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.

Headlam Group ROCE % Related Terms

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Headlam Group (LSE:HEAD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Headlam Group PLC (LSE:HEAD) » Definitions » ROCE %

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Traded in Other Exchanges

HEADl:UK HEAD.GB:UK

Address

Gorsey Lane, Coleshill, PO Box 1, Birmingham, GBR, B46 1LW

Website

https://www.headlam.com

Headlam Group PLC trades on floor covering products in the United Kingdom market. It operates its business across the UK and in Continental Europe also providing next-day delivery service for its products. The company to be able to offer its services has developed an independent operating structure that includes over 50 different businesses across the UK and a few more in continental Europe. Every segment represents an individual trading operation, and each operation is wholly aligned with the sales, marketing, supply, and distribution of floor-covering products.

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