REA Group (ASX:REA) ROCE % : 22.03% (As of Dec. 2023)

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What is REA Group 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. REA Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 22.03%.

REA Group ROCE % Historical Data

The historical data trend for REA Group'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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REA Group ROCE % Chart

REA Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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20.12

20.10

28.86

26.23

23.65

REA Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															30.53	21.84	27.02	20.58	22.03

REA Group ROCE % Calculation

REA Group'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 )
	=	530.4	/	( ( (2568.8 - 349.8)	+	(2626.6 - 360.8) )	/ 2 )
	=	530.4	/	( (2219	+	2265.8)	/ 2 )
	=	530.4	/	2242.4
	=	23.65 %

REA Group'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 )
	=	509.2	/	( ( (2626.6 - 360.8)	+	(2678.4 - 321.1) )	/ 2 )
	=	509.2	/	( ( 2265.8	+	2357.3 )	/ 2 )
	=	509.2	/	2311.55
	=	22.03 %

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

REA Group (ASX:REA) 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.

REA Group ROCE % Related Terms

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REA Group (ASX:REA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » REA Group Ltd (ASX:REA) » Definitions » ROCE %

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RPGRY:USA R9C:Germany

Address

511 Church Street, Richmond, Melbourne, VIC, AUS, 3121

Website

https://www.rea-group.com

REA Group is a technology company operating in the real estate sector. REA Group's primary business is a online listings platform for residential real estate, www.realestate.com.au, which is the largest residential real estate listings platform in Australia, at around three times the size of number two, www.domain.com.au, owned by Domain Group. REA Group is majority-owned by News Corp (ASX:NWS), while Domain is majority-owned by rival media company Nine Entertainment (ASX:NEC). REA Group's other businesses include adjacent markets and services, and investments in online listings platforms in Asia.

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