James Hardie Industries (James Hardie Industries) ROCE % : 23.14% (As of Dec. 2023)

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What is James Hardie Industries 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. James Hardie Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 23.14%.

James Hardie Industries ROCE % Historical Data

The historical data trend for James Hardie Industries'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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James Hardie Industries ROCE % Chart

James Hardie Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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12.74

9.69

13.71

20.52

20.96

James Hardie Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															18.37	14.82	24.80	23.89	23.14

James Hardie Industries ROCE % Calculation

James Hardie Industries'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 )
	=	760.5	/	( ( (4243.2 - 769.9)	+	(4479.1 - 697.3) )	/ 2 )
	=	760.5	/	( (3473.3	+	3781.8)	/ 2 )
	=	760.5	/	3627.55
	=	20.96 %

James Hardie Industries'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	906.8	/	( ( (4450.6 - 679.2)	+	(4815.6 - 749.1) )	/ 2 )
	=	906.8	/	( ( 3771.4	+	4066.5 )	/ 2 )
	=	906.8	/	3918.95
	=	23.14 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

James Hardie Industries (NYSE:JHX) 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.

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James Hardie Industries (James Hardie Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » James Hardie Industries PLC (NYSE:JHX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

JHIUF:USA JHA0:Germany JHA:Germany JHA:Germany JHX:Australia

Address

Harcourt Street, Europa House, 2nd Floor, Harcourt Centre, Dublin, IRL, D02 WR20

Website

https://ir.jameshardie.com.au

James Hardie is a manufacturer of fiber cement-based building products, selling primarily to the residential construction industry. North America is the primary geography, generating about 80% of group earnings. Here, it is the largest manufacturer of fiber cement, which is mainly used for siding. Asia-Pacific businesses in Australia, New Zealand, and the Philippines, as well as Europe, make up the rest of earnings. In 2018, the group acquired Fermacell, a fiber gypsum building products business headquartered in Germany with operations throughout Europe.