Nickel Industries (ASX:NIC) ROCE % : 11.81% (As of Dec. 2023)

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What is Nickel Industries 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. Nickel Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.81%.

Nickel Industries ROCE % Historical Data

The historical data trend for Nickel Industries'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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Nickel Industries ROCE % Chart

Nickel Industries Annual Data

Trend

Jun19

Dec20

Dec21

Dec22

Dec23

ROCE %

28.40

13.64

12.25

9.74

Nickel Industries Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial							14.03	14.36	10.20	9.09	11.81

Nickel Industries ROCE % Calculation

Nickel Industries's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	439.518	/	( ( (3960.675 - 307.333)	+	(6082.591 - 713.956) )	/ 2 )
	=	439.518	/	( (3653.342	+	5368.635)	/ 2 )
	=	439.518	/	4510.9885
	=	9.74 %

Nickel Industries'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 )
	=	540.27	/	( ( (4477.398 - 697.648)	+	(6082.591 - 713.956) )	/ 2 )
	=	540.27	/	( ( 3779.75	+	5368.635 )	/ 2 )
	=	540.27	/	4574.1925
	=	11.81 %

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

Nickel Industries (ASX:NIC) 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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Nickel Industries (ASX:NIC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Nickel Industries Ltd (ASX:NIC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NICMF:USA NM5:Germany

Address

66 Hunter Street, Level 2, Sydney, NSW, AUS, 2000

Website

https://www.nickelmines.com.au

Nickel Industries Ltd is engaged in acquiring, exploring, and developing nickel projects. It holds 80% interest in the Hengjaya Nickel and Ranger Nickel projects, both of which operate 2 line Rotary Kiln Electric Furnace (RKEF) plants producing NPI within the Indonesia Morowali Industrial Park (IMIP). Nickel Industries also holds an 80% economic interest in the Hengjaya Mineralindo Nickel Mine ('Hengjaya Mine'), a large tonnage, high-grade saprolite deposit located in the Morowali Regency of Central Sulawesi, Indonesia.