Sappi (JSE:SAP) ROCE % : 7.15% (As of Mar. 2024)

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What is Sappi 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. Sappi's annualized ROCE % for the quarter that ended in Mar. 2024 was 7.15%.

Sappi ROCE % Historical Data

The historical data trend for Sappi'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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Sappi ROCE % Chart

Sappi Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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8.71

-0.80

2.52

17.85

9.90

Sappi 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															10.29	5.91	-0.36	-7.28	7.15

Sappi ROCE % Calculation

Sappi'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 )
	=	8306.977	/	( ( (109619.811 - 26819.809)	+	(109925.197 - 24958.861) )	/ 2 )
	=	8306.977	/	( (82800.002	+	84966.336)	/ 2 )
	=	8306.977	/	83883.169
	=	9.90 %

Sappi'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 )
	=	5880.512	/	( ( (110063.95 - 29290.762)	+	(109204.153 - 25482.226) )	/ 2 )
	=	5880.512	/	( ( 80773.188	+	83721.927 )	/ 2 )
	=	5880.512	/	82247.5575
	=	7.15 %

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

Sappi (JSE:SAP) 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.

Sappi ROCE % Related Terms

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Sappi (JSE:SAP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Sappi Ltd (JSE:SAP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SPPJY:USA SPI:Germany

Address

108 Oxford Road, Rosebank, Houghton Estate, Johannesburg, GT, ZAF, 2198

Website

https://www.sappi.com

Sappi Ltd produces and sells a variety of paper and paper-related products. The products and services include Dissolving pulp, Graphic papers, Packaging and speciality papers, Casting and release papers, Biomaterials and Bio-energy. The company organizes itself into three primary segments based on geography: North America, Europe, and Southern Africa. More of the revenue comes from Europe than any other geography.