IPH (ASX:IPH) ROCE % : 9.91% (As of Dec. 2024)

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What is IPH 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. IPH's annualized ROCE % for the quarter that ended in Dec. 2024 was 9.91%.

IPH ROCE % Historical Data

The historical data trend for IPH'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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IPH ROCE % Chart

IPH Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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14.50

11.43

12.13

12.25

9.86

IPH Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROCE %	Get a 7-Day Free Trial															11.55	11.25	7.63	10.94	9.91

IPH ROCE % Calculation

IPH's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	114.6	/	( ( (1196.625 - 87.098)	+	(1313.4 - 99.2) )	/ 2 )
	=	114.6	/	( (1109.527	+	1214.2)	/ 2 )
	=	114.6	/	1161.8635
	=	9.86 %

IPH's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Jun. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Jun. 2024 )		(Q: Dec. 2024 )
	=	125.8	/	( ( (1313.4 - 99.2)	+	(1435.7 - 110) )	/ 2 )
	=	125.8	/	( ( 1214.2	+	1325.7 )	/ 2 )
	=	125.8	/	1269.95
	=	9.91 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2024) EBIT data.

IPH (ASX:IPH) 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.

IPH ROCE % Related Terms

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IPH Business Description

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1IP:Germany

Address

201 Sussex Street, Level 24, Tower 2, Darling Park, Sydney, NSW, AUS, 2000

Website

https://www.iphltd.com.au

IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base consists of multinationals, public sector research organizations, and local businesses across various industries like healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.

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