Emmerson (LSE:EML) ROCE % : -12.81% (As of Jun. 2023)

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What is Emmerson 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. Emmerson's annualized ROCE % for the quarter that ended in Jun. 2023 was -12.81%.

Emmerson ROCE % Historical Data

The historical data trend for Emmerson'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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Emmerson ROCE % Chart

Emmerson Annual Data

Trend

Mar17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-12.99

-16.60

-15.88

-13.84

-12.01

Emmerson Semi-Annual Data
	Sep17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial								-16.18	-13.10	-15.64	-12.81	-11.36

Emmerson ROCE % Calculation

Emmerson's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	-2.621	/	( ( (18.348 - 1.38)	+	(21.757 - 0.847) )	/ 2 )
	=	-2.621	/	( (16.968	+	20.91)	/ 2 )
	=	-2.621	/	18.939
	=	-13.84 %

Emmerson's ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Dec. 2022 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Dec. 2022 )		(Q: Jun. 2023 )
	=	-2.578	/	( ( (21.757 - 0.847)	+	(19.61 - 0.278) )	/ 2 )
	=	-2.578	/	( ( 20.91	+	19.332 )	/ 2 )
	=	-2.578	/	20.121
	=	-12.81 %

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

Emmerson (LSE:EML) 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.

Emmerson ROCE % Related Terms

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Emmerson (LSE:EML) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Emmerson PLC (LSE:EML) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

4UM:Germany

Address

25 Bedford Square, London, GBR, WC1B 3HH

Website

https://www.emmersonplc.com

Emmerson PLC is a potash development company. The principal activity of the group is the exploration, development, and exploitation of a potash development project in Morocco.