SThree (LSE:STEM) ROCE % : 22.45% (As of Nov. 2024)

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What is SThree 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. SThree's annualized ROCE % for the quarter that ended in Nov. 2024 was 22.45%.

SThree ROCE % Historical Data

The historical data trend for SThree'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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SThree ROCE % Chart

SThree Annual Data

Trend

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Nov24

ROCE %

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23.38

36.25

38.00

33.49

26.35

SThree Semi-Annual Data
	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23	May24	Nov24
ROCE %	Get a 7-Day Free Trial															31.02	34.76	34.42	32.39	22.45

SThree ROCE % Calculation

SThree's annualized ROCE % for the fiscal year that ended in Nov. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2024 )		(A: Nov. 2023 )		(A: Nov. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2024 )		(A: Nov. 2023 )		(A: Nov. 2024 )
	=	69.085	/	( ( (472.303 - 229.548)	+	(506.725 - 225.073) )	/ 2 )
	=	69.085	/	( (242.755	+	281.652)	/ 2 )
	=	69.085	/	262.2035
	=	26.35 %

SThree's ROCE % of for the quarter that ended in Nov. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2024 )		(Q: May. 2024 )		(Q: Nov. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2024 )		(Q: May. 2024 )		(Q: Nov. 2024 )
	=	59.142	/	( ( (468.213 - 222.978)	+	(506.725 - 225.073) )	/ 2 )
	=	59.142	/	( ( 245.235	+	281.652 )	/ 2 )
	=	59.142	/	263.4435
	=	22.45 %

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

SThree (LSE:STEM) 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.

SThree ROCE % Related Terms

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SThree Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SThree PLC (LSE:STEM) » Definitions » ROCE %

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STEMl:UK

Address

75 King William Street, 1st Floor, London, GBR, EC4N 7BE

Website

https://www.sthree.com

SThree PLC is involved in the staffing business. It provides contract and permanent recruitment services. The company operates in information and communication, engineering, energy, life sciences, banking, and finance sectors. It provides its service through various brands such as Progressive, Computer Futures, Real Staffing Group, and Huxley Associates. The company generated revenue from DACH, Rest of Europe, Netherlands including Spain, USA, Middle East & Asia.