New Zealand Rural Land Co (NZSE:NZL) ROCE % : 9.79% (As of Dec. 2023)

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What is New Zealand Rural Land Co 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. New Zealand Rural Land Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 9.79%.

New Zealand Rural Land Co ROCE % Historical Data

The historical data trend for New Zealand Rural Land Co'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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New Zealand Rural Land Co ROCE % Chart

New Zealand Rural Land Co Annual Data

Trend

Jun22

Dec23

ROCE %

14.45

6.99

New Zealand Rural Land Co Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	3.14	31.60	5.43	4.18	9.79

New Zealand Rural Land Co ROCE % Calculation

New Zealand Rural Land Co'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: Jun. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Jun. 2022 )		(A: Dec. 2023 )
	=	23.43	/	( ( (320.451 - 1.832)	+	(398.224 - 46.02) )	/ 2 )
	=	23.43	/	( (318.619	+	352.204)	/ 2 )
	=	23.43	/	335.4115
	=	6.99 %

New Zealand Rural Land Co'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 )
	=	33.37	/	( ( (362.647 - 33.419)	+	(398.224 - 46.02) )	/ 2 )
	=	33.37	/	( ( 329.228	+	352.204 )	/ 2 )
	=	33.37	/	340.716
	=	9.79 %

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

New Zealand Rural Land Co (NZSE:NZL) 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.

New Zealand Rural Land Co ROCE % Related Terms

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New Zealand Rural Land Co (NZSE:NZL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » New Zealand Rural Land Co Ltd (NZSE:NZL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

8UK:Germany

Address

c/o Duncan Cotterill, Level 2, Chartered Accountants, 50 Customhouse Quay, Wellington, NZL, 6011

Website

https://www.nzrlc.co.nz

New Zealand Rural Land Co Ltd operates as a real estate company that offers investors exposure to rural land as an asset class without direct involvement in agricultural operations. Its principal activity is an investment in New Zealand's rural farmland. The company seeks an opportunity to focus on dairyland, due to a combination of recent legislative and bank lending changes.

New Zealand Rural Land Co (NZSE:NZL) Headlines

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