Ashtead Group (Ashtead Group) ROCE % : 11.99% (As of Jan. 2024)

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What is Ashtead 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. Ashtead Group's annualized ROCE % for the quarter that ended in Jan. 2024 was 11.99%.

Ashtead Group ROCE % Historical Data

The historical data trend for Ashtead 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.

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Ashtead Group ROCE % Chart

Ashtead Group Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROCE %

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17.09

13.47

12.32

14.79

16.41

Ashtead Group Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															15.20	13.79	16.05	17.13	11.99

Ashtead Group ROCE % Calculation

Ashtead Group's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	2517.4	/	( ( (15290.1 - 1474.7)	+	(18729.3 - 1857.8) )	/ 2 )
	=	2517.4	/	( (13815.4	+	16871.5)	/ 2 )
	=	2517.4	/	15343.45
	=	16.41 %

Ashtead Group's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	2355.6	/	( ( (21073.4 - 1906.1)	+	(21779.2 - 1663.5) )	/ 2 )
	=	2355.6	/	( ( 19167.3	+	20115.7 )	/ 2 )
	=	2355.6	/	19641.5
	=	11.99 %

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

Ashtead Group (OTCPK:ASHTF) 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.

Ashtead Group ROCE % Related Terms

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Ashtead Group (Ashtead Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Ashtead Group PLC (OTCPK:ASHTF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ASHTY:USA AHTl:UK AHT:UK 0LC:Germany 0LC:Germany

Address

100 Cheapside, London, GBR, EC2V 6DT

Website

https://www.ashtead-group.com

Ashtead is an equipment rental business with operations in the U.S., Canada, and United Kingdom, operating under the Sunbelt Rentals brand. Earnings are mostly derived from the U.S. where Sunbelt enjoy a number-two market position with a 13% share in a highly fragmented market consisting of national, regional, and independent competitors. Ashtead rents a range of construction, industrial, and general equipment such as aerial lifts, hand-held tools, and forklifts across its more than 1,550 rental stores worldwide.