Deterra Royalties (ASX:DRR) ROCE % : 69.63% (As of Dec. 2024)

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What is Deterra Royalties 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. Deterra Royalties's annualized ROCE % for the quarter that ended in Dec. 2024 was 69.63%.

Deterra Royalties ROCE % Historical Data

The historical data trend for Deterra Royalties'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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Deterra Royalties ROCE % Chart

Deterra Royalties Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

ROCE %

183.67

224.23

166.74

217.84

Deterra Royalties Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROCE %	Get a 7-Day Free Trial			159.89	267.73	214.58	228.55	69.63

Deterra Royalties ROCE % Calculation

Deterra Royalties'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 )
	=	225.051	/	( ( (113.473 - 0.968)	+	(101.294 - 7.178) )	/ 2 )
	=	225.051	/	( (112.505	+	94.116)	/ 2 )
	=	225.051	/	103.3105
	=	217.84 %

Deterra Royalties'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 )
	=	203.396	/	( ( (101.294 - 7.178)	+	(495.611 - 5.542) )	/ 2 )
	=	203.396	/	( ( 94.116	+	490.069 )	/ 2 )
	=	203.396	/	292.0925
	=	69.63 %

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

Deterra Royalties (ASX:DRR) 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.

Deterra Royalties ROCE % Related Terms

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Deterra Royalties Business Description

Industry

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Traded in Other Exchanges

DETRF:USA

Address

140 St Georges Terrace, Level 16, Perth, WA, AUS, 6000

Website

https://www.iluka.com

Deterra Royalties was spun out from Iluka Resources in October 2020, with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area in Western Australia. This includes the North Flank mine, producing around 60 million metric tons of iron ore a year, and the South Flank mine, expected to add 85 million metric tons after producing first ore in 2021. It also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Consistent with its strategy to grow into a diversified royalty firm, its Trident Royalties purchase is likely to provide modest diversification from iron ore.