EL (ASX:EIM) ROCE %: -390.00% (As of Dec. 2013)


What is EL ROCE %?

EL ASX:EIM ROCE % is -390.00% as of Dec. 2013. The stock has 3 warning signs investors should review.

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. EL's annualized ROCE % for the quarter that ended in Dec. 2013 was -390.00%.

EL  (ASX:EIM) 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.

EL ROCE % Related Terms

EL ROCE % Historical Data

* Premium members only.

The historical data trend for EL'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.

EL ROCE % Chart

EL Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 -230.40 0.00 0.00 -196.74

EL Semi-Annual Data
Jun04 Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 -171.79 -160.00 -390.00

EL ROCE % Calculation

EL's annualized ROCE % for the fiscal year that ended in Dec. 2013 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=-0.181/( ( (0.759 - 0.577) + (0.757 - 0.755) )/ 2 )
=-0.181/( (0.182+0.002)/ 2 )
=-0.181/0.092
=-196.74 %

EL's ROCE % of for the quarter that ended in Dec. 2013 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2013 )  (Q: Jun. 2013 )(Q: Dec. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2013 )  (Q: Jun. 2013 )(Q: Dec. 2013 )
=-0.156/( ( (0.756 - 0.678) + (0.757 - 0.755) )/ 2 )
=-0.156/( ( 0.078 + 0.002 )/ 2 )
=-0.156/0.04
=-390.00 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2013) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -390.00% mean?
EL (ASX:EIM) has a ROCE % of -390.00% as of Dec. 2013.
Is EL's ROCE % too high?
EL's current ROCE % is -390.00%.
How does EL's ROCE % compare to competitors?
EL's ROCE % is -390.00%. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a company?
A good ROCE % depends on the industry context. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. EL's current ROCE % is -390.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EL stock overvalued right now?
EL (ASX:EIM) has a current ROCE % of -390.00%. The current ROCE % is -390.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For EL (ASX:EIM), the current ROCE % is -390.00% as of Dec. 2013. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

EL Business Description

Industry
EL Corporation Limited was incorporated and domiciled in Australia. The Company's activities during the financial year were the import, design, sales, service and support of computer and communication systems and equipment; provision of information technology education, systems design; and integration and development of consultancy services. The activities were changed at the annual general meeting held on 31st May 2012, with shareholders' approval to include mining and exploration activities in connection with the intended acquisition of the Birthday Mine. The Company operates in Australia, New Zealand, and Taiwan.