Smith Douglas Homes (Smith Douglas Homes) ROCE % : 52.83% (As of Dec. 2023)

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What is Smith Douglas Homes 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. Smith Douglas Homes's annualized ROCE % for the quarter that ended in Dec. 2023 was 52.83%.

Smith Douglas Homes ROCE % Historical Data

The historical data trend for Smith Douglas Homes'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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Smith Douglas Homes ROCE % Chart

Smith Douglas Homes Annual Data

Trend

Dec21

Dec22

Dec23

ROCE %

63.75

98.59

50.40

Smith Douglas Homes Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	-	121.04	86.44	65.18	52.83

Smith Douglas Homes ROCE % Calculation

Smith Douglas Homes'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 )
	=	124.838	/	( ( (223.372 - 37.267)	+	(352.692 - 43.389) )	/ 2 )
	=	124.838	/	( (186.105	+	309.303)	/ 2 )
	=	124.838	/	247.704
	=	50.40 %

Smith Douglas Homes'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 )
	=	129.742	/	( ( (225.563 - 43.676)	+	(352.692 - 43.389) )	/ 2 )
	=	129.742	/	( ( 181.887	+	309.303 )	/ 2 )
	=	129.742	/	245.595
	=	52.83 %

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

Smith Douglas Homes (NYSE:SDHC) 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.

Smith Douglas Homes ROCE % Related Terms

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Smith Douglas Homes (Smith Douglas Homes) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Smith Douglas Homes Corp (NYSE:SDHC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

110 Village Trail, Suite 215, Woodstock, GA, USA, 30188

Website

https://www.smithdouglas.com

Smith Douglas Homes Corp is a company engaged in the design, construction, and sale of single-family homes in some of the highest growth and most desirable markets in the Southeastern United States. The company has organized into five geographical segments so their reportable segments include Atlanta, Raleigh, Charlotte, Nashville, and Alabama which consists of both Birmingham and Huntsville.

Smith Douglas Homes (Smith Douglas Homes) Headlines

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