AVADA Group (ASX:AVD) ROCE % : 13.37% (As of Dec. 2023)

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What is AVADA 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. AVADA Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.37%.

AVADA Group ROCE % Historical Data

The historical data trend for AVADA 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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AVADA Group ROCE % Chart

AVADA Group Annual Data

Trend

Jun21

Jun22

Jun23

ROCE %

-18.03

-4.23

AVADA Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	-19.95	-15.01	-11.72	0.50	13.37

AVADA Group ROCE % Calculation

AVADA Group's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-3.517	/	( ( (89.813 - 21.51)	+	(130.192 - 32.104) )	/ 2 )
	=	-3.517	/	( (68.303	+	98.088)	/ 2 )
	=	-3.517	/	83.1955
	=	-4.23 %

AVADA Group'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 )
	=	13.608	/	( ( (130.192 - 32.104)	+	(132.927 - 27.463) )	/ 2 )
	=	13.608	/	( ( 98.088	+	105.464 )	/ 2 )
	=	13.608	/	101.776
	=	13.37 %

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

AVADA Group (ASX:AVD) 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.

AVADA Group ROCE % Related Terms

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AVADA Group (ASX:AVD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » AVADA Group Ltd (ASX:AVD) » Definitions » ROCE %

Traded in Other Exchanges

N/A

Address

116 Ipswich Road, Suite 1, Level 2, Woolloongabba, QLD, AUS, 4102

Website

https://www.avadagroup.com.au

AVADA Group Ltd is an Australian traffic management operator and ancillary service provider with an established network throughout Queensland and New South Wales. The group has two reportable segments: Queensland Traffic Management and New South Wales Traffic Management. Queensland Traffic Management is the key revenue generator for the group. It provides services to government clients and major contractors in the civil infrastructure and maintenance sector.