Incitec Pivot (ASX:IPL) ROCE %

: 5.01% (As of Sep. 2023)

View and export this data going back to 2003. Start your Free Trial

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. Incitec Pivot's annualized ROCE % for the quarter that ended in Sep. 2023 was 5.01%.

Incitec Pivot ROCE % Historical Data

The historical data trend for Incitec Pivot'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.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 4.28 [6] => 3.84 [7] => 3.40 [8] => 17.30 [9] => 5.12 )

Incitec Pivot Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

4.28

3.84

3.40

17.30

5.12

Incitec Pivot Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %																4.09	14.43	21.10	5.33	5.01

Incitec Pivot ROCE % Calculation

Incitec Pivot'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 )
	=	467.7	/	( ( (10863.7 - 1825.3)	+	(10545.3 - 1307.4) )	/ 2 )
	=	467.7	/	( (9038.4	+	9237.9)	/ 2 )
	=	467.7	/	9138.15
	=	5.12 %

Incitec Pivot'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 )
	=	456	/	( ( (10328.3 - 1369.1)	+	(10545.3 - 1307.4) )	/ 2 )
	=	456	/	( ( 8959.2	+	9237.9 )	/ 2 )
	=	456	/	9098.55
	=	5.01 %

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

Incitec Pivot (ASX:IPL) 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.

Incitec Pivot ROCE % Related Terms

Thank you for viewing the detailed overview of Incitec Pivot's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Incitec Pivot (ASX:IPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Incitec Pivot Ltd (ASX:IPL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

INCZY:USA ICPVF:USA I5P:Germany

Address

28 Freshwater Place, Level 8, Southbank, Melbourne, VIC, AUS, 3006

Website

https://www.incitecpivot.com.au

Incitec Pivot is a leading global explosives company with operations in Australia, Asia, and the Americas. We estimate its share of the global commercial explosives market at about 15%. Explosives contributes around 80% of EBIT. Incitec Pivot is also a major Australian fertilizer producer and distributor and is the only Australian manufacturer of ammonium phosphates and urea. Ammonium phosphates are sold in the domestic market and exported.

Incitec Pivot (ASX:IPL) Headlines

No Headlines