The ROCE, ROA and ROE of Petronas Chemical Group in 2016

Petronas Chemical Group 2016


Balance Sheet

                            2016            2015            Average
CA                      11.5b            12.6b
CL                       21.3b           19.2b
TA                       32.8b           31.8b              32.3b


CL                        2.5b            3.1b
LTL                      2.0b            2.1b
TL                        4.5b            5.2b

TEq                     28.3b           26.6b              27.5b

TEq + TL            32.8b           31.8b



Borrowings         2016             2015  
Short term          0.069b          0.074b
Long term          0.137b          0.183b


What is the average Capital employed of Petronas Chemical in 2016?

Capital employed = TEq + LTL + Short Term borrowings

Capital employed in 2016  =  28.3b + 2.0b + 0.069b = 30.369b
Capital employed in 2015  =  26.6b + 2.1b + 0.074b =  28.774b

Average Capital employed = (30.369b + 28.774b)/2  =  29.6b





Income Statement

                             2016

Revenue              13.9b
EBIT                     4.2b
PBT                      4.1b
PAT                       2.9b



What is the ROCE of Petronas Chemical in 2016?

Return on average Capital Employed (ROCE)
= EBIT / average Capital Employed
= 4.2b/29.6b
= 14.2%

What is the Return on Average Asset of Petronas Chemical in 2016?

ROA
= PAT / Average Total Asset
= 2.9b / 33.2b
= 8.7%

What is the Return on Average Equity of Petronas Chemical in 2016?

ROE
= PAT / Average Total Equity
=  2.9b / 27.5b
= 10.5%


What is the EBIT profit margin of Petronas Chemical in 2016?

EBIT profit margin
= EBIT / Revenue
=  4.2b / 13.9b
=  30.2%


What is the Capital Turnover (Revenue Turnover on its Capital Employed) of Petronas Chemical in 2016?

Capital Turnover
= Revenue / Average Capital Employed
= 13.9b / 29.6b
= 47%



DuPont Formula

ROCE = EBIT profit margin x Capital Turnover