Vulcan Steel (ASX:VSL) ROCE % : 15.44% (As of Dec. 2023)

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What is Vulcan Steel 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. Vulcan Steel's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.44%.

Vulcan Steel ROCE % Historical Data

The historical data trend for Vulcan Steel'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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Vulcan Steel ROCE % Chart

Vulcan Steel Annual Data

Trend

Jun21

Jun22

Jun23

ROCE %

38.46

21.15

Vulcan Steel Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	39.27	36.44	27.08	12.72	15.44

Vulcan Steel ROCE % Calculation

Vulcan Steel'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 )
	=	134.485	/	( ( (719.076 - 190.64)	+	(917.96 - 174.802) )	/ 2 )
	=	134.485	/	( (528.436	+	743.158)	/ 2 )
	=	134.485	/	635.797
	=	21.15 %

Vulcan Steel'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 )
	=	110.304	/	( ( (917.96 - 174.802)	+	(843.9 - 158.569) )	/ 2 )
	=	110.304	/	( ( 743.158	+	685.331 )	/ 2 )
	=	110.304	/	714.2445
	=	15.44 %

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

Vulcan Steel (ASX:VSL) 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.

Vulcan Steel ROCE % Related Terms

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Vulcan Steel (ASX:VSL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Vulcan Steel Ltd (ASX:VSL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

VSL:New Zealand

Address

29 Neales Road, East Tamaki, Auckland, NTL, NZL, 2013

Website

https://www.vulcan.co

Vulcan Steel Ltd is a metals distributor and processor. Its products include Steel, Stainless Steel, Engineering steel, Plate processing, and Coil processing. The company has two operating segments namely, Steel business across New Zealand and Australia which includes Steel distribution, Plate processing, and Coil processing; and Metals business across New , which includes Stainless Steel, Engineering Steel and Aluminium.