Orora (ASX:ORA) ROCE % : 10.40% (As of Dec. 2023)

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What is Orora 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. Orora's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.40%.

Orora ROCE % Historical Data

The historical data trend for Orora'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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Orora ROCE % Chart

Orora Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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9.72

3.35

12.51

17.80

16.96

Orora Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															20.28	15.59	20.81	13.68	10.40

Orora ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	280.2	/	( ( (2708.8 - 1122.3)	+	(2801.8 - 1084.9) )	/ 2 )
	=	280.2	/	( (1586.5	+	1716.9)	/ 2 )
	=	280.2	/	1651.7
	=	16.96 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	313.8	/	( ( (2801.8 - 1084.9)	+	(5666.9 - 1351.1) )	/ 2 )
	=	313.8	/	( ( 1716.9	+	4315.8 )	/ 2 )
	=	313.8	/	3016.35
	=	10.40 %

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

Orora (ASX:ORA) 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.

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Orora (ASX:ORA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Orora Ltd (ASX:ORA) » Definitions » ROCE %

Comparable Companies

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ORRAF:USA OORD:Germany

Address

109-133 Burwood Road, Hawthorn, Melbourne, VIC, AUS, 3122

Website

https://www.ororagroup.com

Orora Ltd was created in late 2013 when Amcor demerged its Australasian fibre and beverage packaging operations and North American packaging distribution business. Orora's Australasian business is focused on glass bottles, beverage cans, and wine closures, after agreeing to divest its fibre business in late 2019. Orora has the number-one position in beverage cans and number-two position in glass bottles and wine closures. Its primary competitors are Visy Group and Owens-Illinois. The North American business is focused on packaging distribution, but has also expanded into point-of-purchase retail display solutions.