Elementis (LSE:ELM) ROCE %

: 2.41% (As of Dec. 2023)

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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. Elementis's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.41%.

Elementis ROCE % Historical Data

The historical data trend for Elementis'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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Elementis Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

5.00

-2.45

1.16

-2.29

4.27

Elementis Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %																-3.57	4.46	-9.12	6.24	2.41

Elementis ROCE % Calculation

Elementis'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 )
	=	47.321	/	( ( (1335.767 - 189.897)	+	(1194.006 - 125.531) )	/ 2 )
	=	47.321	/	( (1145.87	+	1068.475)	/ 2 )
	=	47.321	/	1107.1725
	=	4.27 %

Elementis'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 )
	=	25.754	/	( ( (1176.595 - 108.266)	+	(1194.006 - 125.531) )	/ 2 )
	=	25.754	/	( ( 1068.329	+	1068.475 )	/ 2 )
	=	25.754	/	1068.402
	=	2.41 %

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

Elementis (LSE:ELM) 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.

Elementis ROCE % Related Terms

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Elementis (LSE:ELM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Elementis PLC (LSE:ELM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

EMNSF:USA ELMTY:USA ELMl:UK E3E:Germany

Address

55-57 High Holborn, Caroline House, London, GBR, WC1V 6DX

Website

https://www.elementis.com

Elementis PLC manufactures and sells a variety of chemicals and coatings. The firm organizes itself into five segments based on product type: personal care, coatings, talc, and chromium. These segments produce chemical modifiers and additives for their respective products and services, which include anti-perspirants, decorative and industrial coatings, plastics, chrome metal finishing, and oil and gas drilling. Most of the company's revenue comes from North America, and coatings are the company's largest segment.

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