Costa Group Holdings (ASX:CGC) ROCE %

: 5.41% (As of Jun. 2023)

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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. Costa Group Holdings's annualized ROCE % for the quarter that ended in Jun. 2023 was 5.41%.

Costa Group Holdings ROCE % Historical Data

The historical data trend for Costa Group Holdings'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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Costa Group Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Dec19

Dec20

Dec21

Dec22

ROCE %

85.16

-5.05

8.29

4.77

3.56

Costa Group Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROCE %												9.87	1.37	6.54	0.41	5.41

Costa Group Holdings ROCE % Calculation

Costa Group Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	63.233	/	( ( (2003.115 - 248.692)	+	(2057.589 - 259.72) )	/ 2 )
	=	63.233	/	( (1754.423	+	1797.869)	/ 2 )
	=	63.233	/	1776.146
	=	3.56 %

Costa Group Holdings's ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Dec. 2022 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Dec. 2022 )		(Q: Jun. 2023 )
	=	101.526	/	( ( (2057.589 - 259.72)	+	(2209.283 - 251.304) )	/ 2 )
	=	101.526	/	( ( 1797.869	+	1957.979 )	/ 2 )
	=	101.526	/	1877.924
	=	5.41 %

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

Costa Group Holdings (ASX:CGC) 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.

Costa Group Holdings ROCE % Related Terms

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Costa Group Holdings (ASX:CGC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Costa Group Holdings Ltd (ASX:CGC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CTTQF:USA

Address

275 Robinsons Road, Unit 1, Ravenhall, VIC, AUS, VIC 3023

Website

https://www.costagroup.com.au

Costa Group is the largest fresh produce company in Australia, with an estimated market share of over 15%, principally supplying fresh fruit and vegetables to the major Australian supermarkets. While supplemented by third-party growers, the firm's products are predominantly sourced from around 7,200 planted hectares of farmland, 40 hectares of tomato glasshouse facilities, and mushroom-growing facilities across Australia. Costa also operates berry farms in Morocco and China as part of its international business.