PWR Holdings (ASX:PWH) ROCE % : 25.04% (As of Dec. 2023)

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What is PWR Holdings 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. PWR Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 25.04%.

PWR Holdings ROCE % Historical Data

The historical data trend for PWR Holdings'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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PWR Holdings ROCE % Chart

PWR Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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38.43

28.87

31.96

36.33

32.24

PWR Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial												28.33	45.84	23.86	39.96	25.04

PWR Holdings ROCE % Calculation

PWR Holdings'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 )
	=	30.774	/	( ( (98.526 - 14.616)	+	(123.156 - 16.153) )	/ 2 )
	=	30.774	/	( (83.91	+	107.003)	/ 2 )
	=	30.774	/	95.4565
	=	32.24 %

PWR Holdings'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 )
	=	26.558	/	( ( (123.156 - 16.153)	+	(123.347 - 18.191) )	/ 2 )
	=	26.558	/	( ( 107.003	+	105.156 )	/ 2 )
	=	26.558	/	106.0795
	=	25.04 %

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

PWR Holdings (ASX:PWH) 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.

PWR Holdings ROCE % Related Terms

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PWR Holdings (ASX:PWH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » PWR Holdings Ltd (ASX:PWH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

103 Lahrs Road, Ormeau, QLD, AUS, 4208

Website

https://www.pwr.com.au

PWR Holdings is a designer, manufacturer, and supplier of cooling solutions for motorsports and the performance automotive industry. PWR produces aluminum radiators, intercoolers, heat exchangers, oil coolers, and other cooling accessories for motorsports, performance automotive original equipment manufacturers, the automotive aftermarket, and aerospace and defense sectors. The motorsports segment generates the majority of revenue, while OEM and aftermarket constitute over a third of the income stream. PWR's products are primarily sold in North America and Europe.

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