Electro Rent (Electro Rent) ROCE % : 3.03% (As of Feb. 2016)

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What is Electro Rent 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. Electro Rent's annualized ROCE % for the quarter that ended in Feb. 2016 was 3.03%.

Electro Rent ROCE % Historical Data

The historical data trend for Electro Rent'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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Electro Rent ROCE % Chart

Electro Rent Annual Data

Trend

May06

May07

May08

May09

May10

May11

May12

May13

May14

May15

ROCE %

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15.62

14.77

15.40

13.99

9.99

Electro Rent Quarterly Data
	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16
ROCE %	Get a 7-Day Free Trial															6.36	9.76	7.36	6.07	3.03

Electro Rent ROCE % Calculation

Electro Rent's annualized ROCE % for the fiscal year that ended in May. 2015 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2015 )		(A: May. 2014 )		(A: May. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2015 )		(A: May. 2014 )		(A: May. 2015 )
	=	22.928	/	( ( (302.058 - 71.1)	+	(300.314 - 72.336) )	/ 2 )
	=	22.928	/	( (230.958	+	227.978)	/ 2 )
	=	22.928	/	229.468
	=	9.99 %

Electro Rent's ROCE % of for the quarter that ended in Feb. 2016 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2016 )		(Q: Nov. 2015 )		(Q: Feb. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2016 )		(Q: Nov. 2015 )		(Q: Feb. 2016 )
	=	6.848	/	( ( (285.185 - 58.115)	+	(287.169 - 62.07) )	/ 2 )
	=	6.848	/	( ( 227.07	+	225.099 )	/ 2 )
	=	6.848	/	226.0845
	=	3.03 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2016) EBIT data.

Electro Rent (NAS:ELRC) 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.

Electro Rent ROCE % Related Terms

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Electro Rent (Electro Rent) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Electro Rent Corp (NAS:ELRC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.electrorent.com

Electro Rent Corp was incorporated in California in 1965 and became a publicly held corporation in 1980. The Company rental, lease and sells of new and used electronic test and measurement equipment. The Company purchases that equipment from manufacturers such as Agilent and Tektronix primarily for use by its customers in the aerospace, telecommunications, defense, electronics, industrial and semiconductor industries. The Company data products division provides personal computers and servers from manufacturers including Dell, HP/Compaq, IBM, Toshiba and Apple. It has also expanded its rental, lease and sale of electrical test and inspection equipment used in the industrial industry, which includes electrical contractors and utility companies and their related support services providers. The Company's competitors in the North American T&M rental area include McGrath Rent Corp., Continental Resources, Test Equity and Microlease PLC. It competes for rental business with Microlease plc and Livingston Group Ltd. in Europe and Orix Corporation in Asia.

Executives

James S Pignatelli	director	2300 E SLINGSHOT WAY, KAMAS UT 84036
Theodore E Guth	director	6060 SEPULVEDA BOULEVARD, VAN NUYS CA 91411
Joseph J Kearns	director	C/O ELECTRO RENT CORP, 6060 SEPULVEDA BLVD, VAN NUYS CA 91411
Platinum Equity Llc	10 percent owner	360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Tom Gores	10 percent owner	C/O PLATINUM EQUITY, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Investment Holdings Iii, Llc	10 percent owner	C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iii, Llc	10 percent owner	C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
S Lee Kling	director	1401 S BRENTWOOD BLVD, ST LOUIS MO 63144

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