Sovereign Cloud Holdings (ASX:SOV) ROCE % : -85.12% (As of Dec. 2023)

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What is Sovereign Cloud Holdings 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. Sovereign Cloud Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was -85.12%.

Sovereign Cloud Holdings ROCE % Historical Data

The historical data trend for Sovereign Cloud Holdings'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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Sovereign Cloud Holdings ROCE % Chart

Sovereign Cloud Holdings Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

ROCE %

-40.08

-49.50

-61.99

Sovereign Cloud Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial			-33.61	-42.41	-56.32	-73.76	-85.12

Sovereign Cloud Holdings ROCE % Calculation

Sovereign Cloud Holdings'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 )
	=	-21.37	/	( ( (45.988 - 5.716)	+	(33.943 - 5.263) )	/ 2 )
	=	-21.37	/	( (40.272	+	28.68)	/ 2 )
	=	-21.37	/	34.476
	=	-61.99 %

Sovereign Cloud Holdings'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 )
	=	-19.852	/	( ( (33.943 - 5.263)	+	(21.933 - 3.966) )	/ 2 )
	=	-19.852	/	( ( 28.68	+	17.967 )	/ 2 )
	=	-19.852	/	23.3235
	=	-85.12 %

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

Sovereign Cloud Holdings (ASX:SOV) 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.

Sovereign Cloud Holdings ROCE % Related Terms

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Sovereign Cloud Holdings (ASX:SOV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sovereign Cloud Holdings Ltd (ASX:SOV) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

15-21 Beaconsfield Street, Unit 7, Fyshwick, ACT, AUS, 2609

Website

https://www.australiacloud.com.au

Sovereign Cloud Holdings Ltd provides sovereign cloud services to Australian Governments and critical national industries. It has built a cloud-based platform, which is accredited by Government standards to PROTECTED controls or higher. The platform is available to rent computation cycles and data storage to customers on a pay-as-you-go basis, referred to as Infrastructure as a Service (IaaS).

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