SmartPay Holdings (NZSE:SPY) ROCE % : 16.16% (As of Mar. 2024)

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What is SmartPay Holdings 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. SmartPay Holdings's annualized ROCE % for the quarter that ended in Mar. 2024 was 16.16%.

SmartPay Holdings ROCE % Historical Data

The historical data trend for SmartPay Holdings'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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SmartPay Holdings ROCE % Chart

SmartPay Holdings Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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-2.35

-39.94

7.09

15.49

15.44

SmartPay Holdings Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROCE %	Get a 7-Day Free Trial															10.79	11.54	18.95	15.37	16.16

SmartPay Holdings ROCE % Calculation

SmartPay Holdings's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	9.628	/	( ( (88.27 - 33.331)	+	(151.576 - 81.801) )	/ 2 )
	=	9.628	/	( (54.939	+	69.775)	/ 2 )
	=	9.628	/	62.357
	=	15.44 %

SmartPay Holdings'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 )
	=	10.454	/	( ( (114.06 - 54.457)	+	(151.576 - 81.801) )	/ 2 )
	=	10.454	/	( ( 59.603	+	69.775 )	/ 2 )
	=	10.454	/	64.689
	=	16.16 %

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

SmartPay Holdings (NZSE:SPY) 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.

SmartPay Holdings ROCE % Related Terms

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SmartPay Holdings (NZSE:SPY) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » SmartPay Holdings Ltd (NZSE:SPY) » Definitions » ROCE %

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SMP:Australia

Address

205-209 Wairau Road, Wairau Valley, Auckland, NZL, 0627

Website

https://www.smartpay.co.nz

SmartPay Holdings Ltd is engaged in the provision of payment solutions. It offers an electronic funds transfer at point of sale (EFTPOS) system. Its products include EFTPOS applications, Smartpay Labs, EFTPOS terminals, and mobile EFTPOS machines. The company designs develops and implements payment solutions for customers in New Zealand and Australia. It also licenses its technologies to third parties. The firm's majority of revenue comes from New Zealand.