IRIS Group (XBRU:IRIS) ROCE % : 6.14% (As of Jun. 2012)

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What is IRIS 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. IRIS Group's annualized ROCE % for the quarter that ended in Jun. 2012 was 6.14%.

IRIS Group ROCE % Historical Data

The historical data trend for IRIS 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.

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IRIS Group ROCE % Chart

IRIS Group Annual Data

Trend

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

ROCE %

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18.08

14.89

8.24

7.95

7.42

IRIS Group Semi-Annual Data
	Dec11	Jun12
ROCE %	9.30	6.14

IRIS Group ROCE % Calculation

IRIS Group's annualized ROCE % for the fiscal year that ended in Dec. 2011 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2011 )		(A: Dec. 2010 )		(A: Dec. 2011 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2011 )		(A: Dec. 2010 )		(A: Dec. 2011 )
	=	5.082	/	( ( (127.943 - 59.873)	+	(114.748 - 45.855) )	/ 2 )
	=	5.082	/	( (68.07	+	68.893)	/ 2 )
	=	5.082	/	68.4815
	=	7.42 %

IRIS Group's ROCE % of for the quarter that ended in Jun. 2012 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2012 )		(Q: Dec. 2011 )		(Q: Jun. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2012 )		(Q: Dec. 2011 )		(Q: Jun. 2012 )
	=	4.192	/	( ( (114.748 - 45.855)	+	(102.015 - 34.399) )	/ 2 )
	=	4.192	/	( ( 68.893	+	67.616 )	/ 2 )
	=	4.192	/	68.2545
	=	6.14 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2012) EBIT data.

IRIS Group (XBRU:IRIS) 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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IRIS Group (XBRU:IRIS) Business Description

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