BHP Group (BHP Group) ROCE % : 33.73% (As of Dec. 2021)

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What is BHP 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. BHP Group's annualized ROCE % for the quarter that ended in Dec. 2021 was 33.73%.

BHP Group ROCE % Historical Data

The historical data trend for BHP 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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BHP Group ROCE % Chart

BHP Group Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

ROCE %

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11.91

15.98

17.81

16.54

27.42

BHP Group Semi-Annual Data
	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21
ROCE %	Get a 7-Day Free Trial															19.28	14.07	20.93	34.41	33.73

BHP Group ROCE % Calculation

BHP Group's annualized ROCE % for the fiscal year that ended in Jun. 2021 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2021 )		(A: Jun. 2020 )		(A: Jun. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2021 )		(A: Jun. 2020 )		(A: Jun. 2021 )
	=	25150	/	( ( (105733 - 14824)	+	(108927 - 16403) )	/ 2 )
	=	25150	/	( (90909	+	92524)	/ 2 )
	=	25150	/	91716.5
	=	27.42 %

BHP Group's ROCE % of for the quarter that ended in Dec. 2021 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2021 )		(Q: Jun. 2021 )		(Q: Dec. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2021 )		(Q: Jun. 2021 )		(Q: Dec. 2021 )
	=	29960	/	( ( (108927 - 16403)	+	(105725 - 20619) )	/ 2 )
	=	29960	/	( ( 92524	+	85106 )	/ 2 )
	=	29960	/	88815
	=	33.73 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2021) EBIT data.

BHP Group (NYSE:BBL) 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.

BHP Group ROCE % Related Terms

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BHP Group (BHP Group) Business Description

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Address

160 Victoria Street, Nova South, London, GBR, SW1E 5LB

Website

https://www.bhp.com

BHP is a leading global diversified miner supplying iron ore, copper, oil, gas, and metallurgical. The merger of BHP Limited (now BHP Ltd.) and Billiton PLC (now BHP PLC) created the present-day BHP. Shareholders in each company have equivalent economic and voting rights in BHP as a whole and in 2022 voted to reunify the dual listed structure. Major assets include Pilbara iron ore, Queensland coking coal, Escondida copper and conventional petroleum assets, principally in Australia and the Gulf of Mexico. Onshore U.S. oil and gas assets were sold in 2018 and the remaining Petroleum assets are likely to be spun off and merged with Woodside.