Metcash (ASX:MTS) ROCE % : 17.84% (As of Oct. 2023)

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What is Metcash 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. Metcash's annualized ROCE % for the quarter that ended in Oct. 2023 was 17.84%.

Metcash ROCE % Historical Data

The historical data trend for Metcash'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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Metcash ROCE % Chart

Metcash Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROCE %

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19.24

2.12

15.07

15.37

16.50

Metcash Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
ROCE %	Get a 7-Day Free Trial															15.88	14.72	15.43	16.27	17.84

Metcash ROCE % Calculation

Metcash's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	409.2	/	( ( (5200.9 - 2724.9)	+	(5379.1 - 2896.4) )	/ 2 )
	=	409.2	/	( (2476	+	2482.7)	/ 2 )
	=	409.2	/	2479.35
	=	16.50 %

Metcash's ROCE % of for the quarter that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2023 )		(Q: Apr. 2023 )		(Q: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2023 )		(Q: Apr. 2023 )		(Q: Oct. 2023 )
	=	450.6	/	( ( (5379.1 - 2896.4)	+	(5813.5 - 3244.3) )	/ 2 )
	=	450.6	/	( ( 2482.7	+	2569.2 )	/ 2 )
	=	450.6	/	2525.95
	=	17.84 %

(1) Note: The EBIT data used here is two times the semi-annual (Oct. 2023) EBIT data.

Metcash (ASX:MTS) 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.

Metcash ROCE % Related Terms

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Metcash (ASX:MTS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Metcash Ltd (ASX:MTS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MCSHF:USA MG9:Germany

Address

1 Thomas Holt Drive, Macquarie Park, Sydney, NSW, AUS, 2113

Website

https://www.metcash.com

Metcash is a wholesale distribution and marketing company specialising in food, liquor, and hardware. Centralised wholesale distribution enables retailers to gain access to the combined scale of many retailers to negotiate material volume discounts.The food segment distributes of a range of products and services to independent supermarket and convenience stores. The hardware segment distributes hardware products to independent retail outlets and operates company-owned stores. The liquor segment distributes liquor products to independent retailers and pubs.

Metcash (ASX:MTS) Headlines

From GuruFocus

Metcash Stock Is Estimated To Be Modestly Overvalued

By GF Value GF Value • 05-11-2021