Equatorial Resources (ASX:EQX) ROCE % : -8.26% (As of Dec. 2023)

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What is Equatorial Resources 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. Equatorial Resources's annualized ROCE % for the quarter that ended in Dec. 2023 was -8.26%.

Equatorial Resources ROCE % Historical Data

The historical data trend for Equatorial Resources'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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Equatorial Resources ROCE % Chart

Equatorial Resources Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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-1.86

-2.11

-9.36

-8.01

-10.91

Equatorial Resources 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															-6.95	-12.76	-13.30	-7.41	-8.26

Equatorial Resources ROCE % Calculation

Equatorial Resources's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-1.768	/	( ( (18.497 - 0.297)	+	(16.695 - 2.488) )	/ 2 )
	=	-1.768	/	( (18.2	+	14.207)	/ 2 )
	=	-1.768	/	16.2035
	=	-10.91 %

Equatorial Resources'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 )
	=	-1.232	/	( ( (16.695 - 2.488)	+	(17.73 - 2.09) )	/ 2 )
	=	-1.232	/	( ( 14.207	+	15.64 )	/ 2 )
	=	-1.232	/	14.9235
	=	-8.26 %

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

Equatorial Resources (ASX:EQX) 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.

Equatorial Resources ROCE % Related Terms

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Equatorial Resources (ASX:EQX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Equatorial Resources Ltd (ASX:EQX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

28 The Esplanade, Level 9, BGC Centre, Perth, WA, AUS, 6000

Website

https://www.equatorialresources.com.au

Equatorial Resources Ltd is an iron ore exploration and development company. The company's iron ore projects are located in the Republic of Congo (ROC). The company focuses on advancing its existing mineral resource assets in Africa, as well as searching for new opportunities in the resources sector. It operates the Badondo Iron Project located in the northwest region of the Republic of Congo. Central & West Africa hosts a regional distribution of undeveloped world-class high-grade iron ore deposits. It is comprised of the same rock type and similar geological formation as the Carajas System in South America.