VHM (ASX:VHM) ROCE % : -17.82% (As of Jun. 2023)

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What is VHM 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. VHM's annualized ROCE % for the quarter that ended in Jun. 2023 was -17.82%.

VHM ROCE % Historical Data

The historical data trend for VHM'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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VHM ROCE % Chart

VHM Annual Data

Trend

Jun22

Jun23

ROCE %

-17.82

VHM Semi-Annual Data
	Jun22	Jun23
ROCE %	-	-17.82

VHM ROCE % Calculation

VHM'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 )
	=	-13.503	/	( ( (88.28 - 7.499)	+	(78.766 - 7.981) )	/ 2 )
	=	-13.503	/	( (80.781	+	70.785)	/ 2 )
	=	-13.503	/	75.783
	=	-17.82 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Jun. 2022 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Jun. 2022 )		(Q: Jun. 2023 )
	=	-13.503	/	( ( (88.28 - 7.499)	+	(78.766 - 7.981) )	/ 2 )
	=	-13.503	/	( ( 80.781	+	70.785 )	/ 2 )
	=	-13.503	/	75.783
	=	-17.82 %

(1) Note: The EBIT data used here is one times the annual (Jun. 2023) EBIT data.

VHM (ASX:VHM) 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.

VHM ROCE % Related Terms

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VHM (ASX:VHM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » VHM Ltd (ASX:VHM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

330 Collins Street, Suite 1, Level 11, 330, Melbourne, VIC, AUS, 3000

Website

https://www.vhmltd.com.au

VHM Ltd is an Australian rare earth mineral and mineral sands development company with a focus on tenements within the Loddon Mallee Region of Victoria. Its project includes Goschen.

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