Diversified Energy Co (LSE:DEC) ROCE % : 16.19% (As of Dec. 2023)

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What is Diversified Energy Co 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. Diversified Energy Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.19%.

Diversified Energy Co ROCE % Historical Data

The historical data trend for Diversified Energy Co'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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Diversified Energy Co ROCE % Chart

Diversified Energy Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.87

-4.68

-20.88

-26.92

40.23

Diversified Energy Co Semi-Annual Data
	Dec13	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial														-14.36	-95.51	38.30	61.28	16.19

Diversified Energy Co ROCE % Calculation

Diversified Energy Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	896.263	/	( ( (3145.192 - 929.068)	+	(2744.477 - 504.368) )	/ 2 )
	=	896.263	/	( (2216.124	+	2240.109)	/ 2 )
	=	896.263	/	2228.1165
	=	40.23 %

Diversified Energy Co'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 )
	=	376.858	/	( ( (2980.3 - 564.76)	+	(2744.477 - 504.368) )	/ 2 )
	=	376.858	/	( ( 2415.54	+	2240.109 )	/ 2 )
	=	376.858	/	2327.8245
	=	16.19 %

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

Diversified Energy Co (LSE:DEC) 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.

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Diversified Energy Co (LSE:DEC) Business Description

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GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Diversified Energy Co PLC (LSE:DEC) » Definitions » ROCE %

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DEC:USA DECl:UK DG20:Germany DG20:Germany

Address

1600 Corporate Drive, Birmingham, AL, USA, 35242

Website

https://www.div.energy

Diversified Energy Co PLC is an independent owner and operator of producing natural gas and oil wells concentrated in the Appalachian Basin. The company acquires and manages gas and oil properties and certain associated midstream assets. Its operations are located throughout the neighboring states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana.