Liberty Financial Group (ASX:LFG) ROCE % : 19.89% (As of Dec. 2024)

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What is Liberty Financial 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. Liberty Financial Group's annualized ROCE % for the quarter that ended in Dec. 2024 was 19.89%.

Liberty Financial Group ROCE % Historical Data

The historical data trend for Liberty Financial 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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Liberty Financial Group ROCE % Chart

Liberty Financial Group Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

10.37

5.85

8.61

10.53

Liberty Financial Group Semi-Annual Data
	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROCE %	Get a 7-Day Free Trial					8.30	9.64	10.55	10.37	19.89

Liberty Financial Group ROCE % Calculation

Liberty Financial Group'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 )
	=	1241.717	/	( ( (15692.411 - 4340.878)	+	(16305.723 - 4069.538) )	/ 2 )
	=	1241.717	/	( (11351.533	+	12236.185)	/ 2 )
	=	1241.717	/	11793.859
	=	10.53 %

Liberty Financial Group'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 )
	=	1336.126	/	( ( (16305.723 - 4069.538)	+	(16355.432 - 15158.925) )	/ 2 )
	=	1336.126	/	( ( 12236.185	+	1196.507 )	/ 2 )
	=	1336.126	/	6716.346
	=	19.89 %

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

Liberty Financial Group (ASX:LFG) 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.

Liberty Financial Group ROCE % Related Terms

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Liberty Financial Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Liberty Financial Group Ltd (ASX:LFG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

535 Bourke Street, Level 16, Melbourne, VIC, AUS, 3000

Website

https://www.liberty.com.au

Founded in 1997, Liberty Financial Group is a nonbank lender operating in Australia and New Zealand. Unlike banks, nonbanks are unable to take customer deposits, a privilege exclusive to Authorized deposit-taking institutions, or ADIs. Liberty operates three business segments: residential, secured finance, and financial services. Mortgages make up about 55% of the loan book, with a focus on higher-risk borrowers. Secured finance makes up 40% of loans, including motor finance, commercial property loans, and self-managed superannuation fund, or SMSF, loans. The financial services division includes unsecured personal and small and midsize business loans, mortgage broking, and distribution of general and life insurance.