Chemring Group (LSE:CHG) ROCE % : 9.43% (As of Oct. 2023)

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What is Chemring Group 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. Chemring Group's annualized ROCE % for the quarter that ended in Oct. 2023 was 9.43%.

Chemring Group ROCE % Historical Data

The historical data trend for Chemring Group'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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Chemring Group ROCE % Chart

Chemring Group Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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7.86

11.89

11.74

10.56

9.45

Chemring Group Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
ROCE %	Get a 7-Day Free Trial															11.91	13.11	8.28	9.18	9.43

Chemring Group ROCE % Calculation

Chemring Group's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	45.4	/	( ( (620.1 - 113.7)	+	(596.4 - 142.1) )	/ 2 )
	=	45.4	/	( (506.4	+	454.3)	/ 2 )
	=	45.4	/	480.35
	=	9.45 %

Chemring Group's ROCE % of for the quarter that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2023 )		(Q: Apr. 2023 )		(Q: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2023 )		(Q: Apr. 2023 )		(Q: Oct. 2023 )
	=	44.8	/	( ( (628.2 - 131.9)	+	(596.4 - 142.1) )	/ 2 )
	=	44.8	/	( ( 496.3	+	454.3 )	/ 2 )
	=	44.8	/	475.3
	=	9.43 %

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

Chemring Group (LSE:CHG) 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.

Chemring Group ROCE % Related Terms

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Chemring Group (LSE:CHG) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Chemring Group PLC (LSE:CHG) » Definitions » ROCE %

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CMGMY:USA CMGMF:USA CHGl:UK CMN1:Germany CMN1:Germany

Address

Old Salisbury Lane, Roke Manor, Romsey, Hampshire, GBR, SO51 0ZN

Website

http://www.chemring.co.uk

Chemring Group PLC is a defense technology company. The company's operating segment includes Sensors and Information; it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. and Countermeasures and Energetics segment is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials. It generates maximum revenue from the Countermeasures and Energetics segment. Geographically, the majority of the revenue for the company is generated from UK.

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