Taylor Wimpey (LSE:TW.) ROCE % : 9.78% (As of Dec. 2023)

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What is Taylor Wimpey 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. Taylor Wimpey's annualized ROCE % for the quarter that ended in Dec. 2023 was 9.78%.

Taylor Wimpey ROCE % Historical Data

The historical data trend for Taylor Wimpey'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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Taylor Wimpey ROCE % Chart

Taylor Wimpey Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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21.38

6.68

14.19

16.47

9.72

Taylor Wimpey 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															15.84	13.41	19.69	9.68	9.78

Taylor Wimpey ROCE % Calculation

Taylor Wimpey's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	499.2	/	( ( (6483.1 - 1340.5)	+	(6253.6 - 1128.1) )	/ 2 )
	=	499.2	/	( (5142.6	+	5125.5)	/ 2 )
	=	499.2	/	5134.05
	=	9.72 %

Taylor Wimpey'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 )
	=	501.4	/	( ( (6358 - 1228.2)	+	(6253.6 - 1128.1) )	/ 2 )
	=	501.4	/	( ( 5129.8	+	5125.5 )	/ 2 )
	=	501.4	/	5127.65
	=	9.78 %

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

Taylor Wimpey (LSE:TW.) 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.

Taylor Wimpey ROCE % Related Terms

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Taylor Wimpey (LSE:TW.) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Taylor Wimpey PLC (LSE:TW.) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TWODY:USA TWODF:USA TWl:UK TWW:Germany

Address

Turnpike Road, Gate House, High Wycombe, Buckinghamshire, GBR, HP12 3NR

Website

https://www.taylorwimpey.co.uk

Taylor Wimpey is the U.K.'s second-largest residential property developer by revenue—or third-largest as judged by dwelling completions—and was established via the merger of George Wimpey and Taylor Woodrow in 2007. Taylor Wimpey is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain, aligning with the typical business model employed by U.K. homebuilders. The company also has a nascent homebuilding operation in Spain.

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