ALFABS AUSTRALIA (ASX:AAL) ROCE % : 9.78% (As of Jun. 2024)

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What is ALFABS AUSTRALIA 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. ALFABS AUSTRALIA's annualized ROCE % for the quarter that ended in Jun. 2024 was 9.78%.

ALFABS AUSTRALIA ROCE % Historical Data

The historical data trend for ALFABS AUSTRALIA'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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ALFABS AUSTRALIA ROCE % Chart

ALFABS AUSTRALIA Annual Data

Trend

Jun22

Jun23

Jun24

ROCE %

14.26

ALFABS AUSTRALIA Semi-Annual Data
	Jun22	Jun23	Dec23	Jun24
ROCE %	-	-	16.26	9.78

ALFABS AUSTRALIA ROCE % Calculation

ALFABS AUSTRALIA'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 )
	=	10.519	/	( ( (0 - 0)	+	(115.782 - 42.021) )	/ 1 )
	=	10.519	/	( (0	+	73.761)	/ 1 )
	=	10.519	/	73.761
	=	14.26 %

ALFABS AUSTRALIA'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 )
	=	7.638	/	( ( (123.6 - 41.2)	+	(115.782 - 42.021) )	/ 2 )
	=	7.638	/	( ( 82.4	+	73.761 )	/ 2 )
	=	7.638	/	78.0805
	=	9.78 %

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

ALFABS AUSTRALIA (ASX:AAL) 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.

ALFABS AUSTRALIA ROCE % Related Terms

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ALFABS AUSTRALIA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » ALFABS AUSTRALIA Ltd (ASX:AAL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

152 Mitchell Avenue, Kurri Kurri, Cessnock, NSW, AUS, 2327

Website

https://www.alfabs.com.au

ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment which derives maximum revenue for the company is engaged in the manufacture, repair, overhaul servicing, and hire of underground mining and ancillary equipment together with sales of mining-related consumables and spare parts. The Engineering segment is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses including protective coatings and transport.