Third Age Health Services (NZSE:TAH) ROCE % : 43.82% (As of Mar. 2024)

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What is Third Age Health Services 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. Third Age Health Services's annualized ROCE % for the quarter that ended in Mar. 2024 was 43.82%.

Third Age Health Services ROCE % Historical Data

The historical data trend for Third Age Health Services'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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Third Age Health Services ROCE % Chart

Third Age Health Services Annual Data

Trend

Mar21

Mar22

Mar23

Mar24

ROCE %

70.62

51.01

14.57

32.64

Third Age Health Services Semi-Annual Data
	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROCE %	Get a 7-Day Free Trial			37.96	23.92	11.32	22.00	43.82

Third Age Health Services ROCE % Calculation

Third Age Health Services'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 )
	=	2.264	/	( ( (10.044 - 2.053)	+	(9.803 - 3.923) )	/ 2 )
	=	2.264	/	( (7.991	+	5.88)	/ 2 )
	=	2.264	/	6.9355
	=	32.64 %

Third Age Health Services'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 )
	=	2.86	/	( ( (9.358 - 2.184)	+	(9.803 - 3.923) )	/ 2 )
	=	2.86	/	( ( 7.174	+	5.88 )	/ 2 )
	=	2.86	/	6.527
	=	43.82 %

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

Third Age Health Services (NZSE:TAH) 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.

Third Age Health Services ROCE % Related Terms

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Third Age Health Services (NZSE:TAH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Third Age Health Services Ltd (NZSE:TAH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

536 Kennedy Road, Greenmeadows, Napier, NZL, 4112

Website

https://www.thirdagehealth.co.nz

Third Age Health Services Ltd is engaged in providing health care services to older adults residing in Aged Residential Care. Its services include 24/7 access to a doctor, Regular, scheduled rounds by a Practitioner, and Guaranteed locum cover.