Terragen Holdings (ASX:TGH) ROCE % : -62.11% (As of Dec. 2023)

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What is Terragen Holdings 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. Terragen Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was -62.11%.

Terragen Holdings ROCE % Historical Data

The historical data trend for Terragen Holdings'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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Terragen Holdings ROCE % Chart

Terragen Holdings Annual Data

Trend

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

-27.98

-43.53

-59.20

-60.53

Terragen Holdings Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial				-56.57	-63.47	-74.95	-51.93	-62.11

Terragen Holdings ROCE % Calculation

Terragen Holdings'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 )
	=	-3.966	/	( ( (9.217 - 1.255)	+	(6.347 - 1.205) )	/ 2 )
	=	-3.966	/	( (7.962	+	5.142)	/ 2 )
	=	-3.966	/	6.552
	=	-60.53 %

Terragen Holdings'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 )
	=	-3.802	/	( ( (6.347 - 1.205)	+	(8.348 - 1.248) )	/ 2 )
	=	-3.802	/	( ( 5.142	+	7.1 )	/ 2 )
	=	-3.802	/	6.121
	=	-62.11 %

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

Terragen Holdings (ASX:TGH) 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.

Terragen Holdings ROCE % Related Terms

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Terragen Holdings (ASX:TGH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Terragen Holdings Ltd (ASX:TGH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

39 Access Crescent, Unit 6, Coolum Beach, QLD, AUS, 4573

Website

https://www.terragen.com.au

Terragen Holdings Ltd is an Australia based developer of agricultural bio solutions whose core technology platform addresses soil health and productivity, animal health and nutrition without relying on chemical-based fertilizers, pesticides and antibiotics. Its products include Mylo and Great Land Plus. Geographically, it operates within Australia and Newzealand.