Adrad Holdings (ASX:AHL) ROCE % : 4.88% (As of Dec. 2024)

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What is Adrad Holdings 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. Adrad Holdings's annualized ROCE % for the quarter that ended in Dec. 2024 was 4.88%.

Adrad Holdings ROCE % Historical Data

The historical data trend for Adrad Holdings'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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Adrad Holdings ROCE % Chart

Adrad Holdings Annual Data

Trend

Jun23

Jun24

ROCE %

7.04

5.67

Adrad Holdings Semi-Annual Data
	Dec21	Dec22	Jun23	Dec23	Jun24	Dec24
ROCE %	Get a 7-Day Free Trial			6.34	7.87	6.29	4.95	4.88

Adrad Holdings ROCE % Calculation

Adrad Holdings'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 )
	=	9.232	/	( ( (189.589 - 29.215)	+	(190.556 - 25.094) )	/ 2 )
	=	9.232	/	( (160.374	+	165.462)	/ 2 )
	=	9.232	/	162.918
	=	5.67 %

Adrad Holdings's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Jun. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Jun. 2024 )		(Q: Dec. 2024 )
	=	8.12	/	( ( (190.556 - 25.094)	+	(190.081 - 22.601) )	/ 2 )
	=	8.12	/	( ( 165.462	+	167.48 )	/ 2 )
	=	8.12	/	166.471
	=	4.88 %

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

Adrad Holdings (ASX:AHL) 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.

Adrad Holdings ROCE % Related Terms

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Adrad Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Adrad Holdings Ltd (ASX:AHL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

26 Howards Road, Beverley, SA, AUS, 5009

Website

https://www.adradholdings.com.au

Adrad Holdings Ltd designs and manufactures a wide variety of original equipment and aftermarket heat exchange products for both mobile and stationary applications. The company operates in two segments which include Heat Transfer Solutions, and Distribution. Heat Transfer Solutions segment which derives maximum revenue, engages in original equipment manufacturing which includes manufacturing of industrial and automotive radiators and cooling solutions. The Distribution segment includes the distribution of radiators and parts in the automotive aftermarket. It operates manufacturing facilities in Australia and Thailand. Geographically, the company derives key revenue from Australasia and the rest from Asia, the Middle East, North America, South America, Europe, and Africa.