REACT Group (LSE:REAT) ROCE % : 6.12% (As of Mar. 2024)

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What is REACT 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. REACT Group's annualized ROCE % for the quarter that ended in Mar. 2024 was 6.12%.

REACT Group ROCE % Historical Data

The historical data trend for REACT 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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REACT Group ROCE % Chart

REACT Group Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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-18.88

13.62

4.58

-7.08

2.38

REACT Group Semi-Annual Data
	Mar14	Sep14	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROCE %	Get a 7-Day Free Trial															-5.13	-12.12	-0.29	5.31	6.12

REACT Group ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	0.251	/	( ( (16.226 - 5.265)	+	(16.408 - 6.302) )	/ 2 )
	=	0.251	/	( (10.961	+	10.106)	/ 2 )
	=	0.251	/	10.5335
	=	2.38 %

REACT Group's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Sep. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Sep. 2023 )		(Q: Mar. 2024 )
	=	0.616	/	( ( (16.408 - 6.302)	+	(15.366 - 5.345) )	/ 2 )
	=	0.616	/	( ( 10.106	+	10.021 )	/ 2 )
	=	0.616	/	10.0635
	=	6.12 %

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

REACT Group (LSE:REAT) 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.

REACT Group ROCE % Related Terms

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REACT Group Business Description

Industry

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Traded in Other Exchanges

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Address

Holly House, Shady Lane, Birmingham, GBR, B44 9ER

Website

https://www.reactsc.co.uk

REACT Group PLC is engaged in providing cleaning, decontamination, and hygiene services, including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customers' property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.

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