Sigma Healthcare (Sigma Healthcare) ROCE % : 1.25% (As of Jan. 2024)

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What is Sigma Healthcare 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. Sigma Healthcare's annualized ROCE % for the quarter that ended in Jan. 2024 was 1.25%.

Sigma Healthcare ROCE % Historical Data

The historical data trend for Sigma Healthcare'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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Sigma Healthcare ROCE % Chart

Sigma Healthcare Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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-0.33

10.21

0.33

2.63

2.87

Sigma Healthcare Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
ROCE %	Get a 7-Day Free Trial															0.36	0.58	5.04	5.51	1.25

Sigma Healthcare ROCE % Calculation

Sigma Healthcare's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	16.541	/	( ( (816.462 - 331.959)	+	(914.341 - 246.37) )	/ 2 )
	=	16.541	/	( (484.503	+	667.971)	/ 2 )
	=	16.541	/	576.237
	=	2.87 %

Sigma Healthcare's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Jul. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Jul. 2023 )		(Q: Jan. 2024 )
	=	7.106	/	( ( (736.974 - 263.622)	+	(914.341 - 246.37) )	/ 2 )
	=	7.106	/	( ( 473.352	+	667.971 )	/ 2 )
	=	7.106	/	570.6615
	=	1.25 %

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

Sigma Healthcare (OTCPK:SIGGF) 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.

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Sigma Healthcare (Sigma Healthcare) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Sigma Healthcare Ltd (OTCPK:SIGGF) » Definitions » ROCE %

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Traded in Other Exchanges

S5YA:Germany SIG:Australia

Address

2125 Dandenong Road, Level 6, Clayton, Melbourne, VIC, AUS, 3168

Website

https://www.sigmahealthcare.com.au

Sigma Healthcare is an Australian pharmaceutical distributor, wholesaler and pharmacy franchisor. The revenue growth prospects and returns of pharmaceutical distribution are subdued due to ongoing Pharmaceutical Benefits Scheme, or PBS, price reform, and regulated wholesale gross margins being capped at 7% for community pharmacy. As a result, Sigma and its competitors are seeking to expand into unregulated revenue streams. In addition, pharmacy ownership is restricted to pharmacists, thereby excluding direct corporate ownership and requiring exposure via a franchise business model.