South32 (ASX:S32) ROCE % : 1.98% (As of Dec. 2023)

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What is South32 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. South32's annualized ROCE % for the quarter that ended in Dec. 2023 was 1.98%.

South32 ROCE % Historical Data

The historical data trend for South32'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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South32 ROCE % Chart

South32 Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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7.72

3.70

1.36

30.43

3.19

South32 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															26.01	34.75	13.51	-7.64	1.98

South32 ROCE % Calculation

South32'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 )
	=	637.72	/	( ( (23246.128 - 2699.431)	+	(21700.36 - 2324.4) )	/ 2 )
	=	637.72	/	( (20546.697	+	19375.96)	/ 2 )
	=	637.72	/	19961.3285
	=	3.19 %

South32'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 )
	=	382.464	/	( ( (21700.36 - 2324.4)	+	(21510.612 - 2199.168) )	/ 2 )
	=	382.464	/	( ( 19375.96	+	19311.444 )	/ 2 )
	=	382.464	/	19343.702
	=	1.98 %

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

South32 (ASX:S32) 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.

South32 ROCE % Related Terms

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South32 (ASX:S32) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » South32 Ltd (ASX:S32) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

S32:South Africa SOUHY:USA SHTLF:USA S32l:UK S32:UK 32Z:Germany

Address

108 St Georges Terrace, Level 35, Perth, WA, AUS, 6000

Website

https://www.south32.net

South32 was born of the demerger of noncore assets from BHP in 2015. South32's major operations include alumina businesses in Australia and Brazil, aluminium in Brazil, South Africa, and Mozambique, manganese businesses in Australia and South Africa, and New South Wales metallurgical coal. It also owns the Cannington silver/lead/zinc mine in northwest Queensland and the Cerro Matoso nickel mine in Colombia. Cannington silver mine and manganese operations deliver high returns, but have relatively short reserve life. The company acquired Arizona Mining, which brings with it the high-grade and likely low-cost Taylor deposit in the U.S., and also entered the copper business in 2022 via the purchase of a 45% stake in the Sierra Gorda mine in Chile.

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