Johnson Matthey (Johnson Matthey) ROCE % : 7.64% (As of Sep. 2023)

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What is Johnson Matthey 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. Johnson Matthey's annualized ROCE % for the quarter that ended in Sep. 2023 was 7.64%.

Johnson Matthey ROCE % Historical Data

The historical data trend for Johnson Matthey'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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Johnson Matthey ROCE % Chart

Johnson Matthey Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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15.52

12.04

9.61

7.03

10.92

Johnson Matthey Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial															1.63	12.82	11.92	10.27	7.64

Johnson Matthey ROCE % Calculation

Johnson Matthey's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	526.699	/	( ( (8782.609 - 4152.833)	+	(8530.34 - 3512.136) )	/ 2 )
	=	526.699	/	( (4629.776	+	5018.204)	/ 2 )
	=	526.699	/	4823.99
	=	10.92 %

Johnson Matthey's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	378.712	/	( ( (8530.34 - 3512.136)	+	(8055.693 - 3163.366) )	/ 2 )
	=	378.712	/	( ( 5018.204	+	4892.327 )	/ 2 )
	=	378.712	/	4955.2655
	=	7.64 %

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

Johnson Matthey (OTCPK:JMPLY) 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.

Johnson Matthey ROCE % Related Terms

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Johnson Matthey (Johnson Matthey) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Johnson Matthey PLC (OTCPK:JMPLY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

JMPLF:USA JMATl:UK JMAT:UK JMT2:Germany

Address

25 Farringdon Street, 5th Floor, London, GBR, EC4A 4AB

Website

https://www.matthey.com

Based in the U.K., Johnson Matthey is a global leader in production of emissions catalysts for automobiles and trucks. The company also manufactures industrial catalysts for the chemicals and oil and gas sectors, and a variety of other industrial products derived from platinum-group metals. The company is seeking to be a leader in hydrogen technologies.