Neo Performance Materials (TSX:NEO) ROCE % : 6.04% (As of Mar. 2024)

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What is Neo Performance Materials 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. Neo Performance Materials's annualized ROCE % for the quarter that ended in Mar. 2024 was 6.04%.

Neo Performance Materials ROCE % Historical Data

The historical data trend for Neo Performance Materials'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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Neo Performance Materials ROCE % Chart

Neo Performance Materials Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.54

-13.83

9.90

8.60

1.29

Neo Performance Materials Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															-6.11	6.58	6.65	-1.39	6.04

Neo Performance Materials ROCE % Calculation

Neo Performance Materials'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 )
	=	9.195	/	( ( (918.971 - 174.76)	+	(841.189 - 164.875) )	/ 2 )
	=	9.195	/	( (744.211	+	676.314)	/ 2 )
	=	9.195	/	710.2625
	=	1.29 %

Neo Performance Materials's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	41.544	/	( ( (841.189 - 164.875)	+	(848.201 - 148.839) )	/ 2 )
	=	41.544	/	( ( 676.314	+	699.362 )	/ 2 )
	=	41.544	/	687.838
	=	6.04 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Neo Performance Materials (TSX:NEO) 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.

Neo Performance Materials ROCE % Related Terms

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Neo Performance Materials (TSX:NEO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Neo Performance Materials Inc (TSX:NEO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NOPMF:USA N14:Germany

Address

121 King Street West, Suite 1740, Toronto, ON, CAN, M5H 3T9

Website

https://www.neomaterials.com

Neo Performance Materials Inc is engaged in the innovation, development, processing, and manufacturing of rare earth and rare metal-based functional materials. Its operating segments include Magnequench, Chemicals & Oxides, Rare Metals, and Corporate. The Magnequench segment produces magnetic powders used in bonded and hot-deformed, fully dense neodymium-iron-boron magnets. The Chemicals & Oxides segment manufactures and distributes a broad range of industrial materials. The Rare Metals segment produces specialty metals and their compounds, such as tantalum, niobium, hafnium, rhenium, gallium, and indium. Its geographical segments are Asia, North America, Europe, and Others.

Executives

Rahim Suleman

Director, Senior Officer