Fonterra Co-operative Group (NZSE:FCG) ROCE % : 16.13% (As of Jul. 2023)

View and export this data going back to 2012. Start your Free Trial

What is Fonterra Co-operative 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. Fonterra Co-operative Group's annualized ROCE % for the quarter that ended in Jul. 2023 was 16.13%.

Fonterra Co-operative Group ROCE % Historical Data

The historical data trend for Fonterra Co-operative 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.

Fonterra Co-operative Group ROCE % Chart

Fonterra Co-operative Group Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROCE %

Get a 7-Day Free Trial

2.92

10.82

7.71

8.46

15.25

Fonterra Co-operative Group Semi-Annual Data
	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23
ROCE %	Get a 7-Day Free Trial															5.35	9.14	7.55	14.70	16.13

Fonterra Co-operative Group ROCE % Calculation

Fonterra Co-operative Group's annualized ROCE % for the fiscal year that ended in Jul. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2023 )		(A: Jul. 2022 )		(A: Jul. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2023 )		(A: Jul. 2022 )		(A: Jul. 2023 )
	=	1800	/	( ( (18781 - 6518)	+	(18601 - 7261) )	/ 2 )
	=	1800	/	( (12263	+	11340)	/ 2 )
	=	1800	/	11801.5
	=	15.25 %

Fonterra Co-operative Group's ROCE % of for the quarter that ended in Jul. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jul. 2023 )		(Q: Jan. 2023 )		(Q: Jul. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jul. 2023 )		(Q: Jan. 2023 )		(Q: Jul. 2023 )
	=	1848	/	( ( (21391 - 9815)	+	(18601 - 7261) )	/ 2 )
	=	1848	/	( ( 11576	+	11340 )	/ 2 )
	=	1848	/	11458
	=	16.13 %

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

Fonterra Co-operative Group (NZSE:FCG) 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.

Fonterra Co-operative Group ROCE % Related Terms

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

Fonterra Co-operative Group (NZSE:FCG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Fonterra Co-operative Group Ltd (NZSE:FCG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

109 Fanshawe Street, Auckland Central, Auckland, NZL, 1010

Website

https://www.fonterra.com

Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets are China, the Rest of Asia, Australia, New Zealand, the United States, Latin America, and the Rest of the world.