Loar Holdings (Loar Holdings) ROCE % : 8.57% (As of Mar. 2024)

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What is Loar Holdings 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. Loar Holdings's annualized ROCE % for the quarter that ended in Mar. 2024 was 8.57%.

Loar Holdings ROCE % Historical Data

The historical data trend for Loar Holdings'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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Loar Holdings ROCE % Chart

Loar Holdings Annual Data

Trend

Dec22

Dec23

ROCE %

4.13

7.11

Loar Holdings Quarterly Data
	Dec22	Mar23	Dec23	Mar24
ROCE %	-	7.14	-	8.57

Loar Holdings ROCE % Calculation

Loar Holdings'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 )
	=	69.491	/	( ( (994.521 - 38.405)	+	(1050.445 - 51.48) )	/ 2 )
	=	69.491	/	( (956.116	+	998.965)	/ 2 )
	=	69.491	/	977.5405
	=	7.11 %

Loar Holdings'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 )
	=	85.428	/	( ( (1050.445 - 51.48)	+	(1053.96 - 58.823) )	/ 2 )
	=	85.428	/	( ( 998.965	+	995.137 )	/ 2 )
	=	85.428	/	997.051
	=	8.57 %

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

Loar Holdings (NYSE:LOAR) 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.

Loar Holdings ROCE % Related Terms

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Loar Holdings (Loar Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Loar Holdings Inc (NYSE:LOAR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

20 New King Street, White Plains, New York, NY, USA, 10604

Website

https://www.loargroup.com

Loar Holdings Inc in the design, manufacture, and sale of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Its manufactured products includes auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others. It operate across ten manufacturing facilities located in the United States, one manufacturing facility in Germany and one manufacturing facility in the United Kingdom (UK).

Loar Holdings (Loar Holdings) Headlines

From GuruFocus

Director M Crow Acquires 71,429 Shares of Loar Holdings Inc (LOAR)

By GuruFocus Research • 04-29-2024