Ramsay Health Care (ASX:RHCPA.PFD) ROCE % : 6.04% (As of Dec. 2023)

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What is Ramsay Health Care 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. Ramsay Health Care's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.04%.

Ramsay Health Care ROCE % Historical Data

The historical data trend for Ramsay Health Care'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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Ramsay Health Care ROCE % Chart

Ramsay Health Care Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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11.81

5.39

6.06

4.37

4.78

Ramsay Health Care 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															6.66	2.64	7.08	2.55	6.04

Ramsay Health Care ROCE % Calculation

Ramsay Health Care'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 )
	=	788.3	/	( ( (19473.3 - 3725.6)	+	(21030.2 - 3810.4) )	/ 2 )
	=	788.3	/	( (15747.7	+	17219.8)	/ 2 )
	=	788.3	/	16483.75
	=	4.78 %

Ramsay Health Care'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 )
	=	1032.8	/	( ( (21030.2 - 3810.4)	+	(20638.1 - 3676.1) )	/ 2 )
	=	1032.8	/	( ( 17219.8	+	16962 )	/ 2 )
	=	1032.8	/	17090.9
	=	6.04 %

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

Ramsay Health Care (ASX:RHCPA.PFD) 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.

Ramsay Health Care ROCE % Related Terms

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Ramsay Health Care (ASX:RHCPA.PFD) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Ramsay Health Care Ltd (ASX:RHCPA.PFD) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RMYHY:USA RMSYF:USA RMY:Germany RHC:Australia

Address

126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000

Website

https://www.ramsayhealth.com

Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the U.K., and Sweden. It is the largest private hospital group in each of these markets except for the U.K. where it ranks fifth. Ramsay Sante, which operates the European regions other than the U.K., is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.

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