Sonic Healthcare (ASX:SHL) ROCE % : 6.43% (As of Dec. 2023)

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What is Sonic Healthcare 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. Sonic Healthcare's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.43%.

Sonic Healthcare ROCE % Historical Data

The historical data trend for Sonic Healthcare'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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Sonic Healthcare ROCE % Chart

Sonic Healthcare Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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10.47

8.94

19.60

21.25

9.43

Sonic Healthcare 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															24.16	17.52	10.96	8.06	6.43

Sonic Healthcare ROCE % Calculation

Sonic Healthcare'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 )
	=	1018.213	/	( ( (12552.013 - 2084.274)	+	(13014.629 - 1878.343) )	/ 2 )
	=	1018.213	/	( (10467.739	+	11136.286)	/ 2 )
	=	1018.213	/	10802.0125
	=	9.43 %

Sonic Healthcare'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 )
	=	730.916	/	( ( (13014.629 - 1878.343)	+	(13768.335 - 2174.169) )	/ 2 )
	=	730.916	/	( ( 11136.286	+	11594.166 )	/ 2 )
	=	730.916	/	11365.226
	=	6.43 %

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

Sonic Healthcare (ASX:SHL) 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.

Sonic Healthcare ROCE % Related Terms

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Sonic Healthcare (ASX:SHL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Sonic Healthcare Ltd (ASX:SHL) » Definitions » ROCE %

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SKHHY:USA SKHCF:USA SAB:Germany

Address

225 George Street, Level 22, Grosvenor Place, Sydney, NSW, AUS, 2000

Website

https://www.sonichealthcare.com

Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the U.K., the second largest in Belgium and New Zealand and the third largest in the U.S. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 40% of group revenue in Australia and New Zealand, 25% in the U.S. and 35% in Europe.

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