The a2 Milk Co (ASX:A2M) ROCE % : 18.23% (As of Jun. 2024)

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What is The a2 Milk Co 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. The a2 Milk Co's annualized ROCE % for the quarter that ended in Jun. 2024 was 18.23%.

The a2 Milk Co ROCE % Historical Data

The historical data trend for The a2 Milk Co'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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The a2 Milk Co ROCE % Chart

The a2 Milk Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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56.77

10.60

15.26

18.23

19.01

The a2 Milk Co Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial															14.41	17.69	18.21	20.08	18.23

The a2 Milk Co ROCE % Calculation

The a2 Milk Co's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	222.936	/	( ( (1473.285 - 346.638)	+	(1603.881 - 385.305) )	/ 2 )
	=	222.936	/	( (1126.647	+	1218.576)	/ 2 )
	=	222.936	/	1172.6115
	=	19.01 %

The a2 Milk Co's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	217.14	/	( ( (1487.97 - 323.69)	+	(1603.881 - 385.305) )	/ 2 )
	=	217.14	/	( ( 1164.28	+	1218.576 )	/ 2 )
	=	217.14	/	1191.428
	=	18.23 %

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

The a2 Milk Co (ASX:A2M) 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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The a2 Milk Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The a2 Milk Co Ltd (ASX:A2M) » Definitions » ROCE %

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ACOPY:USA ACOPF:USA ATM:New Zealand 14L:Germany

Address

51 Shortland Street, P.O. Box 163, Level 10, Auckland, NTL, NZL, 1010

Website

https://www.thea2milkcompany.com

A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.

The a2 Milk Co Headlines

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