Anglo American (LSE:AAL) ROCE % : 3.95% (As of Dec. 2023)

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What is Anglo American 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. Anglo American's annualized ROCE % for the quarter that ended in Dec. 2023 was 3.95%.

Anglo American ROCE % Historical Data

The historical data trend for Anglo American'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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Anglo American ROCE % Chart

Anglo American Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.21

11.62

33.36

18.57

7.88

Anglo American 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															25.76	26.12	10.52	11.69	3.95

Anglo American ROCE % Calculation

Anglo American'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 )
	=	3622.15	/	( ( (55341.147 - 8615.574)	+	(52569.76 - 7390.45) )	/ 2 )
	=	3622.15	/	( (46725.573	+	45179.31)	/ 2 )
	=	3622.15	/	45952.4415
	=	7.88 %

Anglo American'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 )
	=	1810.68	/	( ( (52891.344 - 6422.328)	+	(52569.76 - 7390.45) )	/ 2 )
	=	1810.68	/	( ( 46469.016	+	45179.31 )	/ 2 )
	=	1810.68	/	45824.163
	=	3.95 %

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

Anglo American (LSE:AAL) 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.

Anglo American ROCE % Related Terms

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Anglo American (LSE:AAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Anglo American PLC (LSE:AAL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AGL:South Africa NGLOY:USA AAUKF:USA ANM:Namibia AALl:UK NGLB:Germany AAM:Switzerland

Address

17 Charterhouse Street, London, GBR, EC1N 6RA

Website

https://www.angloamerican.com

Anglo American's mining portfolio spans many commodities and continents. Like fellow large diversified miners, Anglo has significant exposure to copper, iron ore and metallurgical coal, but it is unique among the global majors given its significant platinum group metals and diamonds output. The company accounts for about one third of the world's platinum supply and around 30% of palladium supply. Anglo also owns 85% of De Beers, in most years the world's largest supplier and marketer of rough gem diamonds by value. Anglo also plans to move back into the crop nutrients business via its Woodsmith polyhalite project in the United Kingdom.