Aussie Broadband (ASX:ABB) ROCE % : 7.05% (As of Dec. 2023)

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What is Aussie Broadband 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. Aussie Broadband's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.05%.

Aussie Broadband ROCE % Historical Data

The historical data trend for Aussie Broadband'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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Aussie Broadband ROCE % Chart

Aussie Broadband Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

ROCE %

-3.15

4.22

7.92

Aussie Broadband Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial			2.54	5.56	6.89	8.63	7.05

Aussie Broadband ROCE % Calculation

Aussie Broadband's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	39.235	/	( ( (628.495 - 168.79)	+	(693.587 - 163.034) )	/ 2 )
	=	39.235	/	( (459.705	+	530.553)	/ 2 )
	=	39.235	/	495.129
	=	7.92 %

Aussie Broadband'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: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	38.8	/	( ( (693.587 - 163.034)	+	(738.846 - 168.508) )	/ 2 )
	=	38.8	/	( ( 530.553	+	570.338 )	/ 2 )
	=	38.8	/	550.4455
	=	7.05 %

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

Aussie Broadband (ASX:ABB) 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.

Aussie Broadband ROCE % Related Terms

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Aussie Broadband (ASX:ABB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Aussie Broadband Ltd (ASX:ABB) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3 Electra Avenue, Morwell, VIC, AUS, 3840

Website

https://www.aussiebroadband.com.au

Aussie Broadband Ltd is a telecommunications company. It provides NBN subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise, and managed service providers. It is organized into four operating segments: Residential, Business, Wholesale, and Enterprise and Government. The Residential segment is the main revenue driver for the group. Residential segment provides telecommunications services to residential users. The company services all states and territories in Australia.

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