WDS (ASX:WDS) ROCE % : -21.37% (As of Dec. 2014)

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What is WDS 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. WDS's annualized ROCE % for the quarter that ended in Dec. 2014 was -21.37%.

WDS ROCE % Historical Data

The historical data trend for WDS'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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WDS ROCE % Chart

WDS Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

ROCE %

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-5.01

6.61

8.75

7.13

11.11

WDS Semi-Annual Data
	Jun06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14
ROCE %	Get a 7-Day Free Trial												6.03	7.84	12.22	10.19	-21.37

WDS ROCE % Calculation

WDS's annualized ROCE % for the fiscal year that ended in Jun. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2014 )		(A: Jun. 2013 )		(A: Jun. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2014 )		(A: Jun. 2013 )		(A: Jun. 2014 )
	=	20.412	/	( ( (237.702 - 52.766)	+	(241.231 - 58.61) )	/ 2 )
	=	20.412	/	( (184.936	+	182.621)	/ 2 )
	=	20.412	/	183.7785
	=	11.11 %

WDS's ROCE % of for the quarter that ended in Dec. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2014 )		(Q: Jun. 2014 )		(Q: Dec. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2014 )		(Q: Jun. 2014 )		(Q: Dec. 2014 )
	=	-36.954	/	( ( (241.231 - 58.61)	+	(194.467 - 31.297) )	/ 2 )
	=	-36.954	/	( ( 182.621	+	163.17 )	/ 2 )
	=	-36.954	/	172.8955
	=	-21.37 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2014) EBIT data.

WDS (ASX:WDS) 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.

WDS ROCE % Related Terms

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WDS (ASX:WDS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » WDS Ltd (ASX:WDS) » Definitions » ROCE %

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Address

Website

http://www.wdslimited.com.au

WDS Limited is an Australian provider of the development, design, engineering, construction, fabrication and maintenance related services to the cross-section of energy, mining and infrastructure sectors in Australia. The Company delivers services through two divisions, being Energy & Infrastructure and Mining.