Kip McGrath Education Centres (ASX:KME) ROCE % : 7.95% (As of Dec. 2024)

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What is Kip McGrath Education Centres 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. Kip McGrath Education Centres's annualized ROCE % for the quarter that ended in Dec. 2024 was 7.95%.

Kip McGrath Education Centres ROCE % Historical Data

The historical data trend for Kip McGrath Education Centres'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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Kip McGrath Education Centres ROCE % Chart

Kip McGrath Education Centres Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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14.54

11.02

11.23

10.07

6.93

Kip McGrath Education Centres Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROCE %	Get a 7-Day Free Trial															7.14	13.12	0.14	13.90	7.95

Kip McGrath Education Centres ROCE % Calculation

Kip McGrath Education Centres'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 )
	=	1.837	/	( ( (37.114 - 11.077)	+	(34.875 - 7.901) )	/ 2 )
	=	1.837	/	( (26.037	+	26.974)	/ 2 )
	=	1.837	/	26.5055
	=	6.93 %

Kip McGrath Education Centres'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 )
	=	2.2	/	( ( (34.875 - 7.901)	+	(35.423 - 7.066) )	/ 2 )
	=	2.2	/	( ( 26.974	+	28.357 )	/ 2 )
	=	2.2	/	27.6655
	=	7.95 %

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

Kip McGrath Education Centres (ASX:KME) 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.

Kip McGrath Education Centres ROCE % Related Terms

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Kip McGrath Education Centres Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Kip McGrath Education Centres Ltd (ASX:KME) » Definitions » ROCE %

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Address

7 Bond Street, Newcastle, NSW, AUS, 2300

Website

https://www.kipmcgrath.com

Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.