KMG Chemicals (KMG Chemicals) ROCE % : 11.85% (As of Jul. 2018)

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What is KMG Chemicals 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. KMG Chemicals's annualized ROCE % for the quarter that ended in Jul. 2018 was 11.85%.

KMG Chemicals ROCE % Historical Data

The historical data trend for KMG Chemicals'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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KMG Chemicals ROCE % Chart

KMG Chemicals Annual Data

Trend

Jul09

Jul10

Jul11

Jul12

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

ROCE %

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7.25

12.22

15.23

8.01

11.77

KMG Chemicals Quarterly Data
	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18
ROCE %	Get a 7-Day Free Trial															8.59	10.87	11.61	12.77	11.85

KMG Chemicals ROCE % Calculation

KMG Chemicals's annualized ROCE % for the fiscal year that ended in Jul. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2018 )		(A: Jul. 2017 )		(A: Jul. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2018 )		(A: Jul. 2017 )		(A: Jul. 2018 )
	=	88.199	/	( ( (792.431 - 52.906)	+	(818.434 - 59.255) )	/ 2 )
	=	88.199	/	( (739.525	+	759.179)	/ 2 )
	=	88.199	/	749.352
	=	11.77 %

KMG Chemicals's ROCE % of for the quarter that ended in Jul. 2018 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jul. 2018 )		(Q: Apr. 2018 )		(Q: Jul. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jul. 2018 )		(Q: Apr. 2018 )		(Q: Jul. 2018 )
	=	89.468	/	( ( (805.307 - 54.365)	+	(818.434 - 59.255) )	/ 2 )
	=	89.468	/	( ( 750.942	+	759.179 )	/ 2 )
	=	89.468	/	755.0605
	=	11.85 %

(1) Note: The EBIT data used here is four times the quarterly (Jul. 2018) EBIT data.

KMG Chemicals (NYSE:KMG) 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.

KMG Chemicals ROCE % Related Terms

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KMG Chemicals (KMG Chemicals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » KMG Chemicals Inc (NYSE:KMG) » Definitions » ROCE %

Comparable Companies

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Address

Website

http://www.kmgchemicals.com

KMG Chemicals Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on product type. The electronic chemicals segment, which generates the majority of revenue, sells chemicals primarily to manufacturers of semiconductors. The other chemicals segment sells industrial sealants and lubricants primarily to the oil and gas storage and distribution industry as well as wood treatment chemicals used primarily to treat utility poles and cross arms. The majority of revenue comes from the United States.

Executives

Hunter John C Iii	director	C/O PENFORD CORPORATION, 7094 S. REVERE PARKWAY, CENTENNIAL CO 80112-3932
Karen A. Twitchell	director	9 COURTLANDT PLACE, HOUSTON TX 77006
Christopher T. Fraser	director, officer: President and CEO	9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Margaret C Montana	director	910 LOUISIANA STREET, HOUSTON TX 77002
George W Gilman	director	710 N. POST OAK RD., SUITE 400, HOUSTON TX 77024
James Gentilcore	director	NINE HAMPSHIRE STREET, MANSFIELD MA 02048
Malinda G Passmore	officer: VP and CFO	9555 W SAM HOUSTON PARKWAY S, SUITE 600, HOUSTON TX 77099
Stephen A Thorington	director	700 MILAM, SUITE 3100, HOUSTON TX 77002
Gendell Jeffrey L Et Al	other: Former 10% Owner	200 PARK AVENUE SUITE 3900, NEW YORK NY 10166