IPD Group (ASX:IPG) ROCE %

: 23.62% (As of Dec. 2023)

View and export this data going back to 2021. Start your Free Trial

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. IPD Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 23.62%.

IPD Group ROCE % Historical Data

The historical data trend for IPD 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.

* Premium members only.

IPD Group Annual Data

Trend

Jun21

Jun22

Jun23

ROCE %

23.75

29.42

IPD Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	20.56	25.55	30.37	28.67	23.62

IPD Group ROCE % Calculation

IPD Group'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 )
	=	23.398	/	( ( (124.851 - 50.669)	+	(139.607 - 54.717) )	/ 2 )
	=	23.398	/	( (74.182	+	84.89)	/ 2 )
	=	23.398	/	79.536
	=	29.42 %

IPD 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 )
	=	28.214	/	( ( (139.607 - 54.717)	+	(205.181 - 51.134) )	/ 2 )
	=	28.214	/	( ( 84.89	+	154.047 )	/ 2 )
	=	28.214	/	119.4685
	=	23.62 %

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

IPD Group (ASX:IPG) 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.

IPD Group ROCE % Related Terms

Thank you for viewing the detailed overview of IPD Group's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

IPD Group (ASX:IPG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » IPD Group Ltd (ASX:IPG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

43-47 Newton Road, Wetherill Park, Sydney, NSW, AUS, 2164

Website

https://www.ipdgroup.com.au

IPD Group Ltd serves the electrical industry. The company's core focus is power distribution, power monitoring, industrial control, renewables, test and measurement, and services, across a range of verticals such as power generation, commercial, hospitality, infrastructure, and sports and leisure facilities. Its segment includes Products division and Services division. The company generates maximum revenue from the Products division segment. The company's product division consists of five different types of product categories namely, Power distribution, Industrial and motor control, Automation and industrial communication, Power monitoring, Electric vehicle solutions.