Ventia Services Group (ASX:VNT) ROCE % : 19.92% (As of Dec. 2023)

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What is Ventia Services Group 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. Ventia Services Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 19.92%.

Ventia Services Group ROCE % Historical Data

The historical data trend for Ventia Services Group'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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Ventia Services Group ROCE % Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

ROCE %

7.14

15.83

19.30

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	-	14.53	16.94	18.66	19.92

Ventia Services Group ROCE % Calculation

Ventia Services Group'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 )
	=	319	/	( ( (2859 - 1248.4)	+	(2933.6 - 1239.2) )	/ 2 )
	=	319	/	( (1610.6	+	1694.4)	/ 2 )
	=	319	/	1652.5
	=	19.30 %

Ventia Services Group'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 )
	=	333.4	/	( ( (2992 - 1338.7)	+	(2933.6 - 1239.2) )	/ 2 )
	=	333.4	/	( ( 1653.3	+	1694.4 )	/ 2 )
	=	333.4	/	1673.85
	=	19.92 %

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

Ventia Services Group (ASX:VNT) 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.

Ventia Services Group ROCE % Related Terms

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Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » ROCE %

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.