iiNET (ASX:IIN) ROCE % : 16.86% (As of Jun. 2015)

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What is iiNET 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. iiNET's annualized ROCE % for the quarter that ended in Jun. 2015 was 16.86%.

iiNET ROCE % Historical Data

The historical data trend for iiNET'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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iiNET ROCE % Chart

iiNET Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

ROCE %

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18.08

17.27

17.43

16.60

16.24

iiNET Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
ROCE %	Get a 7-Day Free Trial															15.16	15.51	16.66	14.78	16.86

iiNET ROCE % Calculation

iiNET's annualized ROCE % for the fiscal year that ended in Jun. 2015 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2015 )		(A: Jun. 2014 )		(A: Jun. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2015 )		(A: Jun. 2014 )		(A: Jun. 2015 )
	=	115.567	/	( ( (870.599 - 205.369)	+	(992.912 - 234.655) )	/ 2 )
	=	115.567	/	( (665.23	+	758.257)	/ 2 )
	=	115.567	/	711.7435
	=	16.24 %

iiNET's ROCE % of for the quarter that ended in Jun. 2015 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2015 )		(Q: Dec. 2014 )		(Q: Jun. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2015 )		(Q: Dec. 2014 )		(Q: Jun. 2015 )
	=	126.838	/	( ( (968.71 - 222.359)	+	(992.912 - 234.655) )	/ 2 )
	=	126.838	/	( ( 746.351	+	758.257 )	/ 2 )
	=	126.838	/	752.304
	=	16.86 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2015) EBIT data.

iiNET (ASX:IIN) 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.

iiNET ROCE % Related Terms

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iiNET (ASX:IIN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » iiNET Ltd (ASX:IIN) » Definitions » ROCE %

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Address

Website

http://www.iinet.net.au

iiNET Limited (IIN) was established in 1993 to deliver Internet access services to Western Australia. iiNet has 700,000 customers across Australia, NZ and Capetown. Internet and communication services offered include dialup, broadband and phone.