ReadyTech Holdings (ASX:RDY) ROCE % : 4.59% (As of Dec. 2023)

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What is ReadyTech Holdings 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. ReadyTech Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.59%.

ReadyTech Holdings ROCE % Historical Data

The historical data trend for ReadyTech Holdings'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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ReadyTech Holdings ROCE % Chart

ReadyTech Holdings Annual Data

Trend

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

-4.61

9.69

3.92

9.61

5.28

ReadyTech Holdings Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial						9.52	9.05	3.18	6.37	4.59

ReadyTech Holdings ROCE % Calculation

ReadyTech Holdings's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	9.134	/	( ( (185.97 - 49.429)	+	(259.282 - 49.95) )	/ 2 )
	=	9.134	/	( (136.541	+	209.332)	/ 2 )
	=	9.134	/	172.9365
	=	5.28 %

ReadyTech Holdings'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 )
	=	9.432	/	( ( (259.282 - 49.95)	+	(254.889 - 53.664) )	/ 2 )
	=	9.432	/	( ( 209.332	+	201.225 )	/ 2 )
	=	9.432	/	205.2785
	=	4.59 %

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

ReadyTech Holdings (ASX:RDY) 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.

ReadyTech Holdings ROCE % Related Terms

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ReadyTech Holdings (ASX:RDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ReadyTech Holdings Ltd (ASX:RDY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

77 King Street, Level 2, Sydney, NSW, AUS, 2000

Website

https://www.readytech.com.au

ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Education segment. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments and justice departments.