Ajax Resources (LSE:AJAX) ROCE % : -23.53% (As of Aug. 2024)

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What is Ajax Resources 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. Ajax Resources's annualized ROCE % for the quarter that ended in Aug. 2024 was -23.53%.

Ajax Resources ROCE % Historical Data

The historical data trend for Ajax Resources'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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Ajax Resources ROCE % Chart

Ajax Resources Annual Data

Trend

Feb22

Feb23

Feb24

ROCE %

-112.20

-30.31

Ajax Resources Semi-Annual Data
	Aug22	Feb23	Aug23	Feb24	Aug24
ROCE %	-15.57	-90.15	-23.97	-37.48	-23.53

Ajax Resources ROCE % Calculation

Ajax Resources's annualized ROCE % for the fiscal year that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	-0.296	/	( ( (1.111 - 0.045)	+	(0.982 - 0.095) )	/ 2 )
	=	-0.296	/	( (1.066	+	0.887)	/ 2 )
	=	-0.296	/	0.9765
	=	-30.31 %

Ajax Resources's ROCE % of for the quarter that ended in Aug. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Aug. 2024 )		(Q: Feb. 2024 )		(Q: Aug. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Aug. 2024 )		(Q: Feb. 2024 )		(Q: Aug. 2024 )
	=	-0.198	/	( ( (0.982 - 0.095)	+	(0.848 - 0.052) )	/ 2 )
	=	-0.198	/	( ( 0.887	+	0.796 )	/ 2 )
	=	-0.198	/	0.8415
	=	-23.53 %

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

Ajax Resources (LSE:AJAX) 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.

Ajax Resources ROCE % Related Terms

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Ajax Resources Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Ajax Resources PLC (LSE:AJAX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

London Wall, Salisbury House, London, GBR, EC2M 5PS

Website

https://www.ajaxresources.com

Ajax Resources PLC is a special purpose acquisition company formed to raise capital in an initial public offering with the purpose of using the proceeds to acquire one or more unspecified businesses or assets.