WH Smith (LSE:SMWH) ROCE % : 9.30% (As of Feb. 2024)

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What is WH Smith 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. WH Smith's annualized ROCE % for the quarter that ended in Feb. 2024 was 9.30%.

WH Smith ROCE % Historical Data

The historical data trend for WH Smith'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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WH Smith ROCE % Chart

WH Smith Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROCE %

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39.55

-33.83

-9.00

9.03

13.58

WH Smith Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
ROCE %	Get a 7-Day Free Trial															6.90	11.60	11.13	15.46	9.30

WH Smith ROCE % Calculation

WH Smith's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	155	/	( ( (1692 - 517)	+	(1650 - 543) )	/ 2 )
	=	155	/	( (1175	+	1107)	/ 2 )
	=	155	/	1141
	=	13.58 %

WH Smith's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	104	/	( ( (1650 - 543)	+	(1701 - 571) )	/ 2 )
	=	104	/	( ( 1107	+	1130 )	/ 2 )
	=	104	/	1118.5
	=	9.30 %

(1) Note: The EBIT data used here is two times the semi-annual (Feb. 2024) EBIT data.

WH Smith (LSE:SMWH) 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.

WH Smith ROCE % Related Terms

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WH Smith (LSE:SMWH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » WH Smith PLC (LSE:SMWH) » Definitions » ROCE %

Comparable Companies

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WHTPF:USA SMWHl:UK 21Q:Germany

Address

Greenbridge Road, Swindon, Wiltshire, GBR, SN3 3RX

Website

https://www.whsmithplc.co.uk

WH Smith PLC is a U.K. retailer selling a wide range of products. Its two core business segments are travel and high street. WHSmith's travel stores offer products such as food, drink, publications, books, and tech accessories and other products to travelers. This segment operates predominantly in airports, railway stations, hospitals, and workplaces across Europe, Australia, the Middle East, Southeast Asia, and India. The high street segment operates stores in the United Kingdom, predominantly on the U.K. high street. The high street segment sells products into the following categories: stationery, books, newspapers, magazines, and confectionery. WH Smith also has an online retail business that sells a range of books, stationery, magazines, and gifts through its websites.

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