MDM Engineering Group (LSE:MDM) ROCE % : 55.86% (As of Mar. 2014)

View and export this data going back to . Start your Free Trial

What is MDM Engineering 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. MDM Engineering Group's annualized ROCE % for the quarter that ended in Mar. 2014 was 55.86%.

MDM Engineering Group ROCE % Historical Data

The historical data trend for MDM Engineering 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.

* Premium members only.

MDM Engineering Group ROCE % Chart

MDM Engineering Group Annual Data

Trend

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

ROCE %

Get a 7-Day Free Trial

30.96

-10.26

40.24

83.81

41.96

MDM Engineering Group Semi-Annual Data
	Mar12	Sep12	Mar13	Sep13	Mar14
ROCE %	42.90	70.51	96.05	37.27	55.86

MDM Engineering Group ROCE % Calculation

MDM Engineering Group's annualized ROCE % for the fiscal year that ended in Mar. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2014 )		(A: Mar. 2013 )		(A: Mar. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2014 )		(A: Mar. 2013 )		(A: Mar. 2014 )
	=	7.361	/	( ( (40.695 - 21.704)	+	(27.977 - 11.886) )	/ 2 )
	=	7.361	/	( (18.991	+	16.091)	/ 2 )
	=	7.361	/	17.541
	=	41.96 %

MDM Engineering Group's ROCE % of for the quarter that ended in Mar. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2014 )		(Q: Sep. 2013 )		(Q: Mar. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2014 )		(Q: Sep. 2013 )		(Q: Mar. 2014 )
	=	8.674	/	( ( (31.132 - 16.166)	+	(27.977 - 11.886) )	/ 2 )
	=	8.674	/	( ( 14.966	+	16.091 )	/ 2 )
	=	8.674	/	15.5285
	=	55.86 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2014) EBIT data.

MDM Engineering Group (LSE:MDM) 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.

MDM Engineering Group ROCE % Related Terms

Thank you for viewing the detailed overview of MDM Engineering Group's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

MDM Engineering Group (LSE:MDM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » MDM Engineering Group Ltd (LSE:MDM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.mdm-engineering.com

MDM Engineering Group Ltd is engaged in the mineral process engineering and project management. The company has operations in the South Africa.

MDM Engineering Group (LSE:MDM) Headlines

No Headlines