Mount Gibson Iron (ASX:MGX) ROCE % : 53.09% (As of Dec. 2023)

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What is Mount Gibson Iron 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. Mount Gibson Iron's annualized ROCE % for the quarter that ended in Dec. 2023 was 53.09%.

Mount Gibson Iron ROCE % Historical Data

The historical data trend for Mount Gibson Iron'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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Mount Gibson Iron ROCE % Chart

Mount Gibson Iron Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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12.03

17.69

12.36

-36.33

5.98

Mount Gibson Iron 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															-25.39	-48.15	4.25	7.31	53.09

Mount Gibson Iron ROCE % Calculation

Mount Gibson Iron'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 )
	=	35.393	/	( ( (690.274 - 106.876)	+	(676.943 - 75.819) )	/ 2 )
	=	35.393	/	( (583.398	+	601.124)	/ 2 )
	=	35.393	/	592.261
	=	5.98 %

Mount Gibson Iron'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 )
	=	353.942	/	( ( (676.943 - 75.819)	+	(811.271 - 79.052) )	/ 2 )
	=	353.942	/	( ( 601.124	+	732.219 )	/ 2 )
	=	353.942	/	666.6715
	=	53.09 %

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

Mount Gibson Iron (ASX:MGX) 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.

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Mount Gibson Iron (ASX:MGX) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Mount Gibson Iron Ltd (ASX:MGX) » Definitions » ROCE %

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MTGRY:USA MTGRF:USA

Address

2 Kings Park Road, Level 1, West Perth, Perth, WA, AUS, 6005

Website

https://www.mtgibsoniron.com.au

Mount Gibson Iron Ltd is a Western Australia-based iron ore mining company. The activities of the company involve mining, processing and direct shipment of hematite iron ore at the Koolan Island mine site in the Kimberley region of Western Australia; care and maintenance of the Shine hematite iron ore site and related infrastructure, rehabilitation works at the Extension Hill mine site and management of the Geraldton Port facilities in the Mid-West region of Western Australia; treasury management; and the pursuit of mineral resources acquisitions and investments. The company operates into two segments: Mid-West segment and Koolan Island segment. The company derives the majority of its revenue from Koolan Island.