Qantas Airways (ASX:QAN) ROCE % : 33.87% (As of Dec. 2023)

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What is Qantas Airways 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. Qantas Airways's annualized ROCE % for the quarter that ended in Dec. 2023 was 33.87%.

Qantas Airways ROCE % Historical Data

The historical data trend for Qantas Airways'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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Qantas Airways ROCE % Chart

Qantas Airways Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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13.70

-22.20

-19.13

-9.01

31.83

Qantas Airways 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															-9.19	-8.44	36.80	27.70	33.87

Qantas Airways ROCE % Calculation

Qantas Airways'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 )
	=	2762	/	( ( (19653 - 10558)	+	(20354 - 12097) )	/ 2 )
	=	2762	/	( (9095	+	8257)	/ 2 )
	=	2762	/	8676
	=	31.83 %

Qantas Airways'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 )
	=	2818	/	( ( (20354 - 12097)	+	(19277 - 10892) )	/ 2 )
	=	2818	/	( ( 8257	+	8385 )	/ 2 )
	=	2818	/	8321
	=	33.87 %

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

Qantas Airways (ASX:QAN) 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.

Qantas Airways ROCE % Related Terms

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Qantas Airways (ASX:QAN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Qantas Airways Ltd (ASX:QAN) » Definitions » ROCE %

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Traded in Other Exchanges

QUBSF:USA QABSY:USA QAN:Germany

Address

10 Bourke Road, Mascot, Sydney, NSW, AUS, 2020

Website

https://www.qantas.com

Qantas Airways is Australia's largest domestic airline with typically a two thirds market share, effectively competing in a duopoly with Virgin. The company operates a multibrand strategy, with low-cost carrier Jetstar complementing the full-service Qantas brand. Its frequent-flyer loyalty program continues to expand with new partnerships, which are integral to retaining customer loyalty for its core airline business.

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