National Grid (LSE:NG.) ROCE %

: 5.20% (As of Sep. 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. National Grid's annualized ROCE % for the quarter that ended in Sep. 2023 was 5.20%.

National Grid ROCE % Historical Data

The historical data trend for National Grid'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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National Grid Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

5.49

4.24

4.39

7.19

6.86

National Grid Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %																5.23	8.86	6.58	6.82	5.20

National Grid ROCE % Calculation

National Grid's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	5270	/	( ( (94860 - 24770)	+	(92697 - 9130) )	/ 2 )
	=	5270	/	( (70090	+	83567)	/ 2 )
	=	5270	/	76828.5
	=	6.86 %

National Grid'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 )
	=	4410	/	( ( (92697 - 9130)	+	(94247 - 8279) )	/ 2 )
	=	4410	/	( ( 83567	+	85968 )	/ 2 )
	=	4410	/	84767.5
	=	5.20 %

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

National Grid (LSE:NG.) 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.

National Grid ROCE % Related Terms

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National Grid (LSE:NG.) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » National Grid PLC (LSE:NG.) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NGGTF:USA NGG:USA NGl:UK NNGF:Germany N1GG34:Brazil NGG:Argentina

Address

1-3 Strand, London, GBR, WC2N 5EH

Website

https://www.nationalgrid.com

National Grid owns and operates the electric transmission system in England and Wales. It sold the bulk of its U.K. gas transmission business in fiscal 2023 to fund the acquisition of PPL's U.K. power distribution assets. In the Northeastern United States, it serves electricity and gas customers combined in three states. It also owns regulated transmission and electricity generation in the United States, metering services, merchant transmission lines in the U.K., and the Grain (U.K.) liquefied natural gas facility.

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