Link Administration Holdings (ASX:LNK) ROCE % : 10.05% (As of Dec. 2023)

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What is Link Administration 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. Link Administration Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.05%.

Link Administration Holdings ROCE % Historical Data

The historical data trend for Link Administration 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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Link Administration Holdings ROCE % Chart

Link Administration Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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13.56

-2.21

-3.75

-1.53

-1.02

Link Administration Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial												-4.50	1.56	-34.62	47.43	10.05

Link Administration Holdings ROCE % Calculation

Link Administration 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 )
	=	-21.548	/	( ( (3942.163 - 1158.125)	+	(3024.333 - 1570.114) )	/ 2 )
	=	-21.548	/	( (2784.038	+	1454.219)	/ 2 )
	=	-21.548	/	2119.1285
	=	-1.02 %

Link Administration 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 )
	=	148.074	/	( ( (3024.333 - 1570.114)	+	(2206.45 - 715.143) )	/ 2 )
	=	148.074	/	( ( 1454.219	+	1491.307 )	/ 2 )
	=	148.074	/	1472.763
	=	10.05 %

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

Link Administration Holdings (ASX:LNK) 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.

Link Administration Holdings ROCE % Related Terms

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Link Administration Holdings (ASX:LNK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Link Administration Holdings Ltd (ASX:LNK) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LKADF:USA

Address

680 George Street, Level 12, Sydney, NSW, AUS, 2000

Website

https://www.linkgroup.com

Link derives its revenue primarily from providing administration services to the financial services sector in Australia, and the share registry and investment fund sectors in the U.K. The company is the largest provider of superannuation administration services and the second-largest provider of share registry services in Australia. Link's clients are usually contracted for between two and five years. The customers are relatively sticky, resulting in a high recurring revenue. The capital-light business model means cash flow is relatively strong.

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