Reach Machinery Co (SZSE:301596) ROCE % : 12.97% (As of Sep. 2024)

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What is Reach Machinery Co 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. Reach Machinery Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 12.97%.

Reach Machinery Co ROCE % Historical Data

The historical data trend for Reach Machinery Co'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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Reach Machinery Co ROCE % Chart

Reach Machinery Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

17.03

26.02

28.30

25.96

25.71

Reach Machinery Co Quarterly Data
	Dec19	Dec20	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial								16.18	19.94	22.19	17.03	12.97

Reach Machinery Co ROCE % Calculation

Reach Machinery Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	116.387	/	( ( (666.591 - 271.772)	+	(697.963 - 187.492) )	/ 2 )
	=	116.387	/	( (394.819	+	510.471)	/ 2 )
	=	116.387	/	452.645
	=	25.71 %

Reach Machinery Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	113.72	/	( ( (1083.718 - 219.349)	+	(1112.994 - 223.243) )	/ 2 )
	=	113.72	/	( ( 864.369	+	889.751 )	/ 2 )
	=	113.72	/	877.06
	=	12.97 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Reach Machinery Co (SZSE:301596) 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.

Reach Machinery Co ROCE % Related Terms

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Reach Machinery Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Reach Machinery Co Ltd (SZSE:301596) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

No. 909, Section 4, Middle Xihangang Avenue, Shuangliu District, Sichuan Province, Chengdu, CHN, 610207

Website

https://www.reachgroup.cn

Reach Machinery Co Ltd is engaged in the research and development, production and sales of key components for automation equipment transmission and braking systems. Its products include electromagnetic brakes that include spring-loaded brakes, permanent magnet brakes, electric brakes, and other types. Harmonic reducer that includes Cup-RCSD, Top Hat-RHSD, Cup-RCSG, etc. Planetary Roller Screw, Expansion Sleeve and Shrinking Disc.

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