Harvey Norman Holdings (ASX:HVN) ROCE % : 8.89% (As of Dec. 2023)

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What is Harvey Norman Holdings 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. Harvey Norman Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.89%.

Harvey Norman Holdings ROCE % Historical Data

The historical data trend for Harvey Norman 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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Harvey Norman Holdings ROCE % Chart

Harvey Norman Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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15.78

15.22

22.55

19.53

12.40

Harvey Norman Holdings 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															21.69	17.64	16.31	8.06	8.89

Harvey Norman Holdings ROCE % Calculation

Harvey Norman Holdings'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 )
	=	817.444	/	( ( (7246.403 - 989.807)	+	(7671.831 - 738.663) )	/ 2 )
	=	817.444	/	( (6256.596	+	6933.168)	/ 2 )
	=	817.444	/	6594.882
	=	12.40 %

Harvey Norman Holdings'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 )
	=	618.716	/	( ( (7671.831 - 738.663)	+	(7858.144 - 875.222) )	/ 2 )
	=	618.716	/	( ( 6933.168	+	6982.922 )	/ 2 )
	=	618.716	/	6958.045
	=	8.89 %

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

Harvey Norman Holdings (ASX:HVN) 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.

Harvey Norman Holdings ROCE % Related Terms

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Harvey Norman Holdings (ASX:HVN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Harvey Norman Holdings Ltd (ASX:HVN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HNORY:USA HNN:Germany

Address

A1 Richmond Road, Homebush West, Sydney, NSW, AUS, 2140

Website

https://www.harveynormanholdings.com.au

Harvey Norman Holdings Ltd is the franchisor of Harvey Norman, a leading Australia-based retailer that sells goods from the electrical, computer, furniture, entertainment, and bedding sectors. The majority of earnings are generated in Australia, with the international divisions gradually growing in significance.

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