Forge Group (ASX:FGE) ROCE % : 44.90% (As of Jun. 2013)

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What is Forge Group 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. Forge Group's annualized ROCE % for the quarter that ended in Jun. 2013 was 44.90%.

Forge Group ROCE % Historical Data

The historical data trend for Forge Group'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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Forge Group ROCE % Chart

Forge Group Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

ROCE %

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39.79

55.08

50.59

45.11

44.90

Forge Group Semi-Annual Data
	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
ROCE %	Get a 7-Day Free Trial			39.79	55.08	50.59	45.11	44.90

Forge Group ROCE % Calculation

Forge Group's annualized ROCE % for the fiscal year that ended in Jun. 2013 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2013 )		(A: Jun. 2012 )		(A: Jun. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2013 )		(A: Jun. 2012 )		(A: Jun. 2013 )
	=	94.925	/	( ( (478.401 - 285.095)	+	(464.21 - 234.677) )	/ 2 )
	=	94.925	/	( (193.306	+	229.533)	/ 2 )
	=	94.925	/	211.4195
	=	44.90 %

Forge Group's ROCE % of for the quarter that ended in Jun. 2013 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2013 )		(Q: Jun. 2012 )		(Q: Jun. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2013 )		(Q: Jun. 2012 )		(Q: Jun. 2013 )
	=	94.925	/	( ( (478.401 - 285.095)	+	(464.21 - 234.677) )	/ 2 )
	=	94.925	/	( ( 193.306	+	229.533 )	/ 2 )
	=	94.925	/	211.4195
	=	44.90 %

(1) Note: The EBIT data used here is one times the annual (Jun. 2013) EBIT data.

Forge Group (ASX:FGE) 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.

Forge Group ROCE % Related Terms

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Forge Group (ASX:FGE) Business Description

Industry

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Address

Website

http://www.forgegroup.com.au

Forge Group Ltd provides construction, commercial building, engineering, maintenance and workshop fabrication services. Its operations are segmented into four areas - Minerals & Resources, Power, Construction and Asset Management. The Minerals & Resources segment provides a wide range of engineering, design and construction services for the mining and metals sector. The Power segment provides turnkey power generation solutions to the energy and utilities sectors. The Construction segment offers a suite of construction services that covers all disciplines including heavy civil, structural, mechanical, piping, tanks, electrical, instrumentation, and building. Further, the Asset Management segment offers various asset management services. The Company has operational footprints across Australia, North America, Africa and Asia.

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