ReadCloud (ASX:RCL) ROCE % : -56.74% (As of Sep. 2023)

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What is ReadCloud 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. ReadCloud's annualized ROCE % for the quarter that ended in Sep. 2023 was -56.74%.

ReadCloud ROCE % Historical Data

The historical data trend for ReadCloud'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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ReadCloud ROCE % Chart

ReadCloud Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Sep22

Sep23

ROCE %

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-29.81

-15.23

-10.43

-13.59

-25.03

ReadCloud Semi-Annual Data
	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial						-1.01	18.08	-	13.01	-56.74

ReadCloud ROCE % Calculation

ReadCloud'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 )
	=	-2.54	/	( ( (12.078 - 1.724)	+	(14.081 - 4.138) )	/ 2 )
	=	-2.54	/	( (10.354	+	9.943)	/ 2 )
	=	-2.54	/	10.1485
	=	-25.03 %

ReadCloud'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 )
	=	-6.626	/	( ( (16.904 - 3.492)	+	(14.081 - 4.138) )	/ 2 )
	=	-6.626	/	( ( 13.412	+	9.943 )	/ 2 )
	=	-6.626	/	11.6775
	=	-56.74 %

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

ReadCloud (ASX:RCL) 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.

ReadCloud ROCE % Related Terms

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ReadCloud (ASX:RCL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ReadCloud Ltd (ASX:RCL) » Definitions » ROCE %

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N/A

Address

126 Church Street, Level 1, Brighton, VIC, AUS, 3186

Website

https://www.readcloud.com

ReadCloud Ltd is an education technology company that offers digital e-learning solutions to secondary schools. The firm operates in two segments: eBook solutions, which is the key revenue driver, and Vocational Education and Training (VET). It provides software solutions, including eBooks, to schools within Australia. In addition, it also provides digital VET course materials and services to schools through its subsidiary Australian Institute of Education and Training Unit Trust, PKY Media Pty Ltd and Ripponlea Institute Pty Ltd, which offers over 40 VET courses and services to schools across Australia.