Reliance Worldwide (ASX:RWC) ROCE % : 9.14% (As of Dec. 2023)

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What is Reliance Worldwide 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. Reliance Worldwide's annualized ROCE % for the quarter that ended in Dec. 2023 was 9.14%.

Reliance Worldwide ROCE % Historical Data

The historical data trend for Reliance Worldwide'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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Reliance Worldwide ROCE % Chart

Reliance Worldwide Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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10.28

7.75

14.29

12.94

12.01

Reliance Worldwide Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial										11.72	11.80	12.06	11.54	9.14

Reliance Worldwide ROCE % Calculation

Reliance Worldwide'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 )
	=	327.886	/	( ( (2968.345 - 285.667)	+	(3067.292 - 289.699) )	/ 2 )
	=	327.886	/	( (2682.678	+	2777.593)	/ 2 )
	=	327.886	/	2730.1355
	=	12.01 %

Reliance Worldwide'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 )
	=	253.338	/	( ( (3067.292 - 289.699)	+	(3061.063 - 293.12) )	/ 2 )
	=	253.338	/	( ( 2777.593	+	2767.943 )	/ 2 )
	=	253.338	/	2772.768
	=	9.14 %

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

Reliance Worldwide (ASX:RWC) 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.

Reliance Worldwide ROCE % Related Terms

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Reliance Worldwide (ASX:RWC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Reliance Worldwide Corp Ltd (ASX:RWC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RLLWF:USA 0EU:Germany

Address

140 William Street, Level 26, Melbourne, VIC, AUS, 3000

Website

https://www.rwc.com

Reliance Worldwide designs, manufactures, and supplies branded plumbing products which are sold across North America, Asia-Pacific, and Europe. The company focuses on push-to-connect plumbing products, including fitting, pipes and valves, under its brands SharkBite, JG Speedfit, and EvoPex. Reliance's products are used in residential and commercial applications for the residential renovation, maintenance, and home improvement end-markets. Reliance sells around 45% of its products to plumbing wholesalers and merchants, 35% to hardware and home improvement retailers (including Home Depot, Lowe's, and Reece) and 20% to original equipment manufacturers of hot water systems.

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