Management Consulting Group (LSE:MMC) ROCE %: -63.95% (As of Dec. 2019)


What is Management Consulting Group ROCE %?

Management Consulting Group LSE:MMC -30.09% ROCE % is -63.95% as of Dec. 2019. The stock has 3 warning signs investors should review.

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. Management Consulting Group's annualized ROCE % for the quarter that ended in Dec. 2019 was -63.95%.

Management Consulting Group  (LSE:MMC) 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.

Management Consulting Group ROCE % Related Terms

Management Consulting Group ROCE % Historical Data

* Premium members only.

The historical data trend for Management Consulting 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.

Management Consulting Group ROCE % Chart

Management Consulting Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.24 -38.32 -75.51 -46.83 -44.11

Management Consulting Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -147.00 -93.06 -49.40 -28.14 -63.95

Management Consulting Group ROCE % Calculation

Management Consulting Group's annualized ROCE % for the fiscal year that ended in Dec. 2019 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2019 )  (A: Dec. 2018 )(A: Dec. 2019 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2019 )  (A: Dec. 2018 )(A: Dec. 2019 )
=-5.55/( ( (24.818 - 9.524) + (19.321 - 9.453) )/ 2 )
=-5.55/( (15.294+9.868)/ 2 )
=-5.55/12.581
=-44.11 %

Management Consulting Group's ROCE % of for the quarter that ended in Dec. 2019 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2019 )  (Q: Jun. 2019 )(Q: Dec. 2019 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2019 )  (Q: Jun. 2019 )(Q: Dec. 2019 )
=-7.178/( ( (23.6 - 11.02) + (19.321 - 9.453) )/ 2 )
=-7.178/( ( 12.58 + 9.868 )/ 2 )
=-7.178/11.224
=-63.95 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2019) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -63.95% mean?
Management Consulting Group (LSE:MMC) has a ROCE % of -63.95% as of Dec. 2019.
Is Management Consulting Group's ROCE % too high?
Management Consulting Group's current ROCE % is -63.95%.
How does Management Consulting Group's ROCE % compare to INFO and VRSK?
Management Consulting Group's ROCE % of -63.95% can be compared against companies in the Business Services industry. The industry median ROCE % is 8.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Business Services company?
The median ROCE % among Business Services companies is 8.88, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Business Services industry, the median ROCE % is 8.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting Group's current ROCE % is -63.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current ROCE % is -63.95%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Management Consulting Group (LSE:MMC), the current ROCE % is -63.95% as of Dec. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Management Consulting Group Business Description

Address 10 Warwick Lane, St. Paul’s House, 4th Floor, London, GBR, EC4M 7BP
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.