AJ Bell (LSE:AJB) ROCE % : 54.40% (As of Sep. 2023)

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What is AJ Bell 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. AJ Bell's annualized ROCE % for the quarter that ended in Sep. 2023 was 54.40%.

AJ Bell ROCE % Historical Data

The historical data trend for AJ Bell'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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AJ Bell ROCE % Chart

AJ Bell Annual Data

Trend

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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48.71

45.92

41.06

40.27

54.22

AJ Bell Semi-Annual Data
	Sep16	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial									34.06	38.32	46.98	54.95	54.40

AJ Bell ROCE % Calculation

AJ Bell's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	88.613	/	( ( (165.482 - 17.689)	+	(234.322 - 55.254) )	/ 2 )
	=	88.613	/	( (147.793	+	179.068)	/ 2 )
	=	88.613	/	163.4305
	=	54.22 %

AJ Bell's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	92.446	/	( ( (197.989 - 37.189)	+	(234.322 - 55.254) )	/ 2 )
	=	92.446	/	( ( 160.8	+	179.068 )	/ 2 )
	=	92.446	/	169.934
	=	54.40 %

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

AJ Bell (LSE:AJB) 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.

AJ Bell ROCE % Related Terms

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AJ Bell (LSE:AJB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » AJ Bell PLC (LSE:AJB) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AJBl:UK 3FY:Germany

Address

4 Exchange Quay, Salford Quays, Manchester, GBR, M5 3EE

Website

https://www.ajbell.co.uk

AJ Bell PLC is an investment platform in the United Kingdom. The company's core products are SIPPs, ISAs, and Dealing Accounts. SIPPs and ISAs, Lifetime ISA, and junior products. The company generates revenue from Recurring ad valorem which includes custody fees, interest income and investment management fees; and transactional.