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Canadian Tire (Canadian Tire) ROCE % : 7.38% (As of Dec. 2023)


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What is Canadian Tire 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. Canadian Tire's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.38%.

Canadian Tire ROCE % Historical Data

The historical data trend for Canadian Tire'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.

* Premium members only.

Canadian Tire ROCE % Chart

Canadian Tire Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.10 8.90 11.88 10.82 4.44

Canadian Tire Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.37 2.49 5.62 2.51 7.38

Canadian Tire ROCE % Calculation

Canadian Tire'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 )
=502.609/( ( (16269.636 - 5260.95) + (16382.156 - 4762.224) )/ 2 )
=502.609/( (11008.686+11619.932)/ 2 )
=502.609/11314.309
=4.44 %

Canadian Tire'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: Sep. 2023 )(Q: Dec. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=857.78/( ( (16785.751 - 5172.641) + (16382.156 - 4762.224) )/ 2 )
=857.78/( ( 11613.11 + 11619.932 )/ 2 )
=857.78/11616.521
=7.38 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

* 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.

Canadian Tire  (OTCPK:CDNAF) 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.

Canadian Tire ROCE % Related Terms

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Canadian Tire (Canadian Tire) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Canadian Tire Corp Ltd (OTCPK:CDNAF) » Definitions » ROCE %
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Traded in Other Exchanges
YAAA:Germany CTC.A:Canada CTC:Canada
Address
2180 Yonge Street, P.O. Box 770, Toronto, ON, CAN, M4P 2V8
Website
https://www.corp.canadiantire.ca
Canadian Tire sells home goods, sporting equipment, apparel, footwear, automotive parts and accessories, and vehicle fuel through a roughly 1,700-store network of company, dealer, and franchisee-operated locations across Canada. Aside from the namesake banner, stores operate primarily under the Mark's, SportChek, Party City, Atmosphere, and PartSource monikers. Additionally, the company owns Helly Hansen, a Norwegian sportswear and workwear brand, and also operates and holds majority ownership of a financing arm (Canadian Tire Financial Services; 20% owned by Scotiabank) and a REIT (CT REIT; Canadian Tire owns about 70%).