Insteel Industries (FRA:HZ8) ROCE % : 9.98% (As of Mar. 2024)

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What is Insteel Industries 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. Insteel Industries's annualized ROCE % for the quarter that ended in Mar. 2024 was 9.98%.

Insteel Industries ROCE % Historical Data

The historical data trend for Insteel Industries'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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Insteel Industries ROCE % Chart

Insteel Industries Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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3.00

8.56

28.46

47.59

9.93

Insteel Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															6.85	13.88	7.37	1.65	9.98

Insteel Industries ROCE % Calculation

Insteel Industries's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	39.206	/	( ( (476.462 - 63.222)	+	(419.32 - 43.247) )	/ 2 )
	=	39.206	/	( (413.24	+	376.073)	/ 2 )
	=	39.206	/	394.6565
	=	9.93 %

Insteel Industries's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	33.04	/	( ( (358.151 - 30.662)	+	(365.449 - 30.713) )	/ 2 )
	=	33.04	/	( ( 327.489	+	334.736 )	/ 2 )
	=	33.04	/	331.1125
	=	9.98 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Insteel Industries (FRA:HZ8) 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.

Insteel Industries ROCE % Related Terms

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Insteel Industries (FRA:HZ8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Insteel Industries Inc (FRA:HZ8) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

IIIN:USA

Address

1373 Boggs Drive, Mount Airy, NC, USA, 27030

Website

https://www.insteel.com

Insteel Industries Inc manufactures steel wire reinforcing products for concrete construction applications. It manufactures and markets PC strand and welded wire reinforcement, including ESM, concrete pipe reinforcement, and standard welded wire reinforcement. The company's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Its concrete reinforcing products consist of two product lines: PC strand and WWR. Insteel generates its geographical revenue from the United States.

Insteel Industries (FRA:HZ8) Headlines

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