McMillan Shakespeare (ASX:MMS) ROCE % : 22.20% (As of Dec. 2024)

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What is McMillan Shakespeare 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. McMillan Shakespeare's annualized ROCE % for the quarter that ended in Dec. 2024 was 22.20%.

McMillan Shakespeare ROCE % Historical Data

The historical data trend for McMillan Shakespeare'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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McMillan Shakespeare ROCE % Chart

McMillan Shakespeare Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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5.46

20.52

19.75

19.65

25.55

McMillan Shakespeare 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															21.43	19.45	26.26	24.53	22.20

McMillan Shakespeare ROCE % Calculation

McMillan Shakespeare'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 )
	=	155.915	/	( ( (1049.562 - 550.681)	+	(1303.05 - 581.317) )	/ 2 )
	=	155.915	/	( (498.881	+	721.733)	/ 2 )
	=	155.915	/	610.307
	=	25.55 %

McMillan Shakespeare'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 )
	=	167.112	/	( ( (1303.05 - 581.317)	+	(1444.928 - 660.936) )	/ 2 )
	=	167.112	/	( ( 721.733	+	783.992 )	/ 2 )
	=	167.112	/	752.8625
	=	22.20 %

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

McMillan Shakespeare (ASX:MMS) 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.

McMillan Shakespeare ROCE % Related Terms

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McMillan Shakespeare Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » McMillan Shakespeare Ltd (ASX:MMS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NMN:Germany

Address

360 Elizabeth Street, Level 21, The Tower, Melbourne Central, Melbourne, VIC, AUS, 3000

Website

https://www.mmsg.com.au

McMillan Shakespeare is a provider of salary packaging, novated leasing, disability plan management and support co-ordination, and fleet management services. It actively works to cross-sell its products to clients, for example, selling its salary packaging services to its fleet management customers in Australia and New Zealand. McMillan dominates Australia's salary packaging market together with Smartgroup (also covered by Morningstar), and is also Australia's largest provider of novated leasing services by volumes—marginally ahead of Smartgroup and SG Fleet. The group has three operating segments: group remuneration services, asset management services, and plan and support services. Most of the group's revenue is generated from the group remuneration services segment.