Adairs (FRA:1FQ) ROCE % : 12.27% (As of Dec. 2023)

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What is Adairs 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. Adairs's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.27%.

Adairs ROCE % Historical Data

The historical data trend for Adairs'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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Adairs ROCE % Chart

Adairs Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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26.25

23.90

36.64

18.39

12.19

Adairs Semi-Annual Data
	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													15.29	17.47	13.53	10.97	12.27

Adairs ROCE % Calculation

Adairs'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 )
	=	37.366	/	( ( (417.128 - 89.978)	+	(369.166 - 83.139) )	/ 2 )
	=	37.366	/	( (327.15	+	286.027)	/ 2 )
	=	37.366	/	306.5885
	=	12.19 %

Adairs'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 )
	=	34.978	/	( ( (369.166 - 83.139)	+	(374.691 - 90.748) )	/ 2 )
	=	34.978	/	( ( 286.027	+	283.943 )	/ 2 )
	=	34.978	/	284.985
	=	12.27 %

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

Adairs (FRA:1FQ) 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.

Adairs ROCE % Related Terms

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Adairs (FRA:1FQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Adairs Ltd (FRA:1FQ) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ADH:Australia

Address

2 International Court, Scoresby, Melbourne, VIC, AUS, 3179

Website

https://www.adairs.com.au

Adairs Ltd is engaged in the retailing of homewares and home furnishings in Australia and New Zealand. The company's product range includes categories, such as quilt covers and coverlets, sheets, cotton flannelette, pillowcases, quilts, pillows, mattress protectors, pillow protectors, blankets, nursery products, valances, bed wraps, bedspreads, and slippers, kids beach products and towels, cushions, throws, gifts and toys, wall arts, rugs, laundry, and home care products, chairs, bedheads, storage and shelves, ottomans and bench seats, and tables, as well as pots and plants, baskets, throws, home decor, and fragrance products, mirrors, lighting products, and tableware and pets products. Its operating segments are Adairs, Focus and Mocka.

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