Mercury NZ (ASX:MCY) ROCE % : 5.73% (As of Jun. 2024)

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What is Mercury NZ 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. Mercury NZ's annualized ROCE % for the quarter that ended in Jun. 2024 was 5.73%.

Mercury NZ ROCE % Historical Data

The historical data trend for Mercury NZ'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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Mercury NZ ROCE % Chart

Mercury NZ Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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5.10

3.49

7.36

2.92

6.57

Mercury NZ Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial															2.19	8.52	-2.51	7.44	5.73

Mercury NZ ROCE % Calculation

Mercury NZ'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 )
	=	512.169	/	( ( (8610.006 - 870.233)	+	(9055.414 - 1194.446) )	/ 2 )
	=	512.169	/	( (7739.773	+	7860.968)	/ 2 )
	=	512.169	/	7800.3705
	=	6.57 %

Mercury NZ's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	449.304	/	( ( (8848.719 - 1034.737)	+	(9055.414 - 1194.446) )	/ 2 )
	=	449.304	/	( ( 7813.982	+	7860.968 )	/ 2 )
	=	449.304	/	7837.475
	=	5.73 %

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

Mercury NZ (ASX:MCY) 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.

Mercury NZ ROCE % Related Terms

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Mercury NZ Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Mercury NZ Ltd (ASX:MCY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MGHTF:USA MCY:New Zealand MRY:Germany

Address

33 Broadway, The Mercury Building, P O Box 90399, Newmarket, Auckland, NTL, NZL, 1142

Website

https://www.mercury.co.nz

Mercury NZ (formerly Mighty River Power) generates more than 15% of New Zealand's electricity and is one of the four major electricity generators and suppliers in the country. All electricity is generated from renewable sources, which makes it one of the lowest-cost providers of electricity. The company operates nine hydro stations and five geothermal power plants in the North Island and some wind farms. Mercury sells electricity to residential and commercial customers and has the largest share of the key Auckland market.