2 Cheap Cars Group (NZSE:2CC) ROCE % : 40.48% (As of Sep. 2023)

View and export this data going back to 2021. Start your Free Trial

What is 2 Cheap Cars Group 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. 2 Cheap Cars Group's annualized ROCE % for the quarter that ended in Sep. 2023 was 40.48%.

2 Cheap Cars Group ROCE % Historical Data

The historical data trend for 2 Cheap Cars Group'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.

* Premium members only.

2 Cheap Cars Group ROCE % Chart

2 Cheap Cars Group Annual Data

Trend

Mar21

Mar22

Mar23

ROCE %

23.62

17.79

12.04

2 Cheap Cars Group Semi-Annual Data
	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial			22.21	14.70	11.88	12.62	40.48

2 Cheap Cars Group ROCE % Calculation

2 Cheap Cars Group's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	2.6	/	( ( (37.603 - 16.657)	+	(29.368 - 7.116) )	/ 2 )
	=	2.6	/	( (20.946	+	22.252)	/ 2 )
	=	2.6	/	21.599
	=	12.04 %

2 Cheap Cars Group's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	9.554	/	( ( (29.368 - 7.116)	+	(31.628 - 6.679) )	/ 2 )
	=	9.554	/	( ( 22.252	+	24.949 )	/ 2 )
	=	9.554	/	23.6005
	=	40.48 %

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

2 Cheap Cars Group (NZSE:2CC) 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.

2 Cheap Cars Group ROCE % Related Terms

Thank you for viewing the detailed overview of 2 Cheap Cars Group's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

2 Cheap Cars Group (NZSE:2CC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » 2 Cheap Cars Group Ltd (NZSE:2CC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

102 Mays Road, Onehunga, Auckland, NTL, NZL, 1061

Website

https://www.2cheapcars.co.nz

2 Cheap Cars Group Ltd is an integrated automotive group operating throughout New Zealand via two divisions: Automotive Retail and Finance. The 2 Cheap Cars Group draws revenue from the two divisions: automotive retail division, revenue is primarily from the sale of vehicles and from agent commissions relating to third-party finance and insurance products. NZ Motor Finance (NZMF) generates finance income from lending to customers who are financing vehicles, and from selling guaranteed asset protection insurance (GAP) and payment protection insurance (PPI) products.

2 Cheap Cars Group (NZSE:2CC) Headlines

No Headlines