Gem Diamonds (LSE:GEMD) ROCE % : 2.88% (As of Dec. 2023)

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What is Gem Diamonds 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. Gem Diamonds's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.88%.

Gem Diamonds ROCE % Historical Data

The historical data trend for Gem Diamonds'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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Gem Diamonds ROCE % Chart

Gem Diamonds Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.40

11.80

13.38

10.46

3.23

Gem Diamonds 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															9.43	9.17	11.14	3.80	2.88

Gem Diamonds ROCE % Calculation

Gem Diamonds's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	8.688	/	( ( (300.682 - 19.06)	+	(303.925 - 47.281) )	/ 2 )
	=	8.688	/	( (281.622	+	256.644)	/ 2 )
	=	8.688	/	269.133
	=	3.23 %

Gem Diamonds'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 )
	=	7.296	/	( ( (267.76 - 16.957)	+	(303.925 - 47.281) )	/ 2 )
	=	7.296	/	( ( 250.803	+	256.644 )	/ 2 )
	=	7.296	/	253.7235
	=	2.88 %

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

Gem Diamonds (LSE:GEMD) 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.

Gem Diamonds ROCE % Related Terms

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Gem Diamonds (LSE:GEMD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Gem Diamonds Ltd (LSE:GEMD) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

GMDMF:USA GEMDl:UK ZVW:Germany

Address

2 Eaton Gate, London, GBR, SW1W 9BJ

Website

https://www.gemdiamonds.com

Gem Diamonds Ltd is a United Kingdom-based company engaged in the exploration and development of diamond mines. The company's geographical segments include Lesotho (diamond mining activities); Belgium (sales, marketing, and manufacturing of diamonds); and BVI, RSA, the UK, and Cyprus (technical and administrative services). It generates maximum revenue from the Belgium region. Its projects include Letseng Diamond mine and Ghaghoo Diamond mine. The company's revenue is derived from mining activities, polished manufacturing margins, and diamond analysis and manufacturing services.

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