Iris Energy (Iris Energy) ROCE % : -7.23% (As of Dec. 2023)

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What is Iris Energy 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. Iris Energy's annualized ROCE % for the quarter that ended in Dec. 2023 was -7.23%.

Iris Energy ROCE % Historical Data

The historical data trend for Iris Energy'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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Iris Energy ROCE % Chart

Iris Energy Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

ROCE %

-23.13

-171.29

-38.86

Iris Energy Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial							-3.90	15.31	-141.61	-	-7.23

Iris Energy ROCE % Calculation

Iris Energy'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 )
	=	-154.156	/	( ( (570.46 - 85.106)	+	(332.074 - 24.001) )	/ 2 )
	=	-154.156	/	( (485.354	+	308.073)	/ 2 )
	=	-154.156	/	396.7135
	=	-38.86 %

Iris Energy'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 )
	=	-25.052	/	( ( (332.074 - 24.001)	+	(417.167 - 32.343) )	/ 2 )
	=	-25.052	/	( ( 308.073	+	384.824 )	/ 2 )
	=	-25.052	/	346.4485
	=	-7.23 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Iris Energy (NAS:IREN) 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.

Iris Energy ROCE % Related Terms

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Iris Energy (Iris Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Iris Energy Ltd (NAS:IREN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

44 Market Street, Level 12, Sydney, NSW, AUS, 2000

Website

https://www.irisenergy.co

Iris Energy Ltd is a Bitcoin mining company. It builds, owns, and operates data centers and electrical infrastructure for the mining of Bitcoin powered by renewable energy. The company's mining operations generate revenue by earning Bitcoin through a combination of block rewards and transaction fees from the operation of its specialized computers called Application-specific Integrated Circuits and exchanging these Bitcoin for currencies such as USD or CAD on a daily basis.