VHM (ASX:VHM) ROCE % : -10.89% (As of Dec. 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 Dec. 2023 was -10.89%.

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

Jun24

ROCE %

-17.82

-9.05

VHM Semi-Annual Data
	Jun23	Dec23	Jun24
ROCE %	-	-10.89	-7.01

VHM ROCE % Calculation

VHM'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 )
	=	-6.217	/	( ( (78.766 - 7.981)	+	(70.092 - 3.468) )	/ 2 )
	=	-6.217	/	( (70.785	+	66.624)	/ 2 )
	=	-6.217	/	68.7045
	=	-9.05 %

VHM'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 )
	=	-7.652	/	( ( (78.766 - 7.981)	+	(73.466 - 3.689) )	/ 2 )
	=	-7.652	/	( ( 70.785	+	69.777 )	/ 2 )
	=	-7.652	/	70.281
	=	-10.89 %

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