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ITM Power (LSE:ITM) ROCE % : -10.85% (As of Oct. 2023)


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What is ITM Power 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. ITM Power's annualized ROCE % for the quarter that ended in Oct. 2023 was -10.85%.

ITM Power ROCE % Historical Data

The historical data trend for ITM Power'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.

* Premium members only.

ITM Power ROCE % Chart

ITM Power Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -30.15 -66.41 -20.44 -15.08 -27.00

ITM Power Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -15.39 -20.83 -29.10 -25.25 -10.85

ITM Power ROCE % Calculation

ITM Power's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Apr. 2023 )  (A: Apr. 2022 )(A: Apr. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Apr. 2023 )  (A: Apr. 2022 )(A: Apr. 2023 )
=-100.628/( ( (458.165 - 50.129) + (402.319 - 64.917) )/ 2 )
=-100.628/( (408.036+337.402)/ 2 )
=-100.628/372.719
=-27.00 %

ITM Power's ROCE % of for the quarter that ended in Oct. 2023 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Oct. 2023 )  (Q: Apr. 2023 )(Q: Oct. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Oct. 2023 )  (Q: Apr. 2023 )(Q: Oct. 2023 )
=-35.788/( ( (402.319 - 64.917) + (403.054 - 80.758) )/ 2 )
=-35.788/( ( 337.402 + 322.296 )/ 2 )
=-35.788/329.849
=-10.85 %

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

* 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.

ITM Power  (LSE:ITM) 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.

ITM Power ROCE % Related Terms

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ITM Power (LSE:ITM) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ITM Power PLC (LSE:ITM) » Definitions » ROCE %
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Traded in Other Exchanges
ITMPF:USA ITM.GB:UK IJ8:Germany
Address
2 Bessemer Park, Shepcote Lane, Sheffield, GBR, S9 1DZ
Website
https://www.itm-power.com
ITM Power PLC designs and manufactures integrated hydrogen energy systems for energy storage and clean fuel production. The company is also involved in the research and development of scientific and engineering projects; the development and manufacture of prototype products; and the sale of electrolyzer products such as HGas, HFuel, HPac. It offers a range of services including construction, consulting, and other services. Its primary geographic markets are the United Kingdom, the Rest of Europe, Germany, and with maximum revenue from the United Kingdom.