IRESS (IRSMF) ROCE % : 7.49% (As of Dec. 2023)

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What is IRESS 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. IRESS's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.49%.

IRESS ROCE % Historical Data

The historical data trend for IRESS'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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IRESS ROCE % Chart

IRESS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.43

10.61

8.47

-13.31

IRESS Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															9.33	9.90	7.42	-31.94	7.49

IRESS ROCE % Calculation

IRESS'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 )
	=	-70.469	/	( ( (674.805 - 72.515)	+	(530.266 - 73.689) )	/ 2 )
	=	-70.469	/	( (602.29	+	456.577)	/ 2 )
	=	-70.469	/	529.4335
	=	-13.31 %

IRESS's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	36.164	/	( ( (595.37 - 85.848)	+	(530.266 - 73.689) )	/ 2 )
	=	36.164	/	( ( 509.522	+	456.577 )	/ 2 )
	=	36.164	/	483.0495
	=	7.49 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

IRESS (OTCPK:IRSMF) 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.

IRESS ROCE % Related Terms

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IRESS (IRSMF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » IRESS Ltd (OTCPK:IRSMF) » Definitions » ROCE %

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IRE:Australia

Address

385 Bourke Street, Level 16, Melbourne, VIC, AUS, 3000

Website

https://www.iress.com

Iress develops software for the financial-services industry, operating in multiple regions and servicing clients ranging from small retail to large institutional businesses. Its core business unit, mainly in Australia, generates most of the company's earnings and free cash flows. Iress expanded into noncore markets through acquisitions, ultimately eroding returns and margins, with free cash flows from the core business invested in the noncore businesses. Its recent strategy includes reprioritizing growth in the core APAC business and divesting/monetizing noncore businesses. We view this renewed focus on its core business as a positive, as it will help maintain Iress' economic moat.