Sims (ASX:SGM) ROCE % : 4.54% (As of Dec. 2024)

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What is Sims 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. Sims's annualized ROCE % for the quarter that ended in Dec. 2024 was 4.54%.

Sims ROCE % Historical Data

The historical data trend for Sims'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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Sims ROCE % Chart

Sims Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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-9.40

11.13

24.64

8.55

4.22

Sims 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															9.59	7.53	9.44	-1.26	4.54

Sims ROCE % Calculation

Sims'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 )
	=	149.4	/	( ( (4705.7 - 1093.5)	+	(4904.7 - 1429.3) )	/ 2 )
	=	149.4	/	( (3612.2	+	3475.4)	/ 2 )
	=	149.4	/	3543.8
	=	4.22 %

Sims'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 )
	=	157.8	/	( ( (4904.7 - 1429.3)	+	(4469.1 - 997.4) )	/ 2 )
	=	157.8	/	( ( 3475.4	+	3471.7 )	/ 2 )
	=	157.8	/	3473.55
	=	4.54 %

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

Sims (ASX:SGM) 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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Sims Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Sims Ltd (ASX:SGM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SMUPF:USA SMSMY:USA I8M:Germany I8M:Germany

Address

189 O’Riordan Street, Suite 2, Level 9, Mascot, Sydney, NSW, AUS, 2020

Website

https://www.simsltd.com

Sims is the world's largest publicly traded metal and electronics recycler, with about three-fourths of earnings generated in North America and the remainder from Australia and New Zealand. Its main business is the buying, processing, and selling of scrap metal. Sims North American segment comprises the largest ferrous scrap recycler in North America, trading as Sims Metal Management, and 50% owned SA Recycling. Almost all sales are of ferrous metals with less than 10% of sales volumes from more valuable nonferrous metals retrieved in the scrap recycling process.