ReadCloud (ASX:RCL) ROCE %: 33.61% (As of Mar. 2026)


What is ReadCloud ROCE %?

ReadCloud ASX:RCL -2.90% ROCE % is 33.61% as of Mar. 2026. The stock has 3 warning signs investors should review.

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. ReadCloud's annualized ROCE % for the quarter that ended in Mar. 2026 was 33.61%.

ReadCloud  (ASX:RCL) 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.

ReadCloud ROCE % Related Terms

ReadCloud ROCE % Historical Data

* Premium members only.

The historical data trend for ReadCloud'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.

ReadCloud ROCE % Chart

ReadCloud Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Sep22 Sep23 Sep24 Sep25
ROCE %
Get a 7-Day Free Trial Premium Member Only -10.43 -13.59 -25.03 -10.54 -4.57

ReadCloud Semi-Annual Data
Jun17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.84 -29.86 26.62 -34.51 33.61

ReadCloud ROCE % Calculation

ReadCloud's annualized ROCE % for the fiscal year that ended in Sep. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2025 )  (A: Sep. 2024 )(A: Sep. 2025 )
=-0.418/( ( (11.333 - 2.344) + (11.583 - 2.28) )/ 2 )
=-0.418/( (8.989+9.303)/ 2 )
=-0.418/9.146
=-4.57 %

ReadCloud's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=3.126/( ( (11.583 - 2.28) + (14.91 - 5.611) )/ 2 )
=3.126/( ( 9.303 + 9.299 )/ 2 )
=3.126/9.301
=33.61 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 33.61% mean?
ReadCloud (ASX:RCL) has a ROCE % of 33.61% as of Mar. 2026.
Is ReadCloud's ROCE % too high?
ReadCloud's current ROCE % is 33.61%. The Software industry median ROCE % is 5.27. ReadCloud's value of 33.61% is 537.8% above this industry median.
How does ReadCloud's ROCE % compare to CRM and SHOP?
ReadCloud's ROCE % of 33.61% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. ReadCloud's value of 33.61% is 537.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,713 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ReadCloud's current ROCE % of 33.61% is 537.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadCloud's current ROCE % is 33.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadCloud stock overvalued right now?
Based on GuruFocus' analysis, ReadCloud (ASX:RCL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.10, compared to a current price of A$0.07 — trading 33% below its estimated fair value. The current ROCE % is 33.61% and 537.8% above the Software industry median of 5.27. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For ReadCloud (ASX:RCL), the current ROCE % is 33.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

ReadCloud Business Description

Address 126 Church Street, Level 1, Brighton, VIC, AUS, 3186
ReadCloud Ltd is an education technology company that offers digital e-learning solutions to secondary schools. The firm operates in two segments: eBook solutions, which is the key revenue driver, and Vocational Education and Training (VET). It provides software solutions, including eBooks, to schools within Australia. In addition, it also provides digital VET course materials and services to schools through its subsidiary Australian Institute of Education and Training Unit Trust, PKY Media Pty Ltd and Ripponlea Institute Pty Ltd, which offers over 40 VET courses and services to schools across Australia.