Westjet Airlines (FRA:WC41) ROCE % : 14.91% (As of Sep. 2019)

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What is Westjet Airlines 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. Westjet Airlines's annualized ROCE % for the quarter that ended in Sep. 2019 was 14.91%.

Westjet Airlines ROCE % Historical Data

The historical data trend for Westjet Airlines'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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Westjet Airlines ROCE % Chart

Westjet Airlines Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROCE %

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14.79

16.23

11.71

9.29

4.03

Westjet Airlines Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
ROCE %	Get a 7-Day Free Trial															10.51	0.71	7.10	4.00	14.91

Westjet Airlines ROCE % Calculation

Westjet Airlines's annualized ROCE % for the fiscal year that ended in Dec. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	123.648	/	( ( (4316.444 - 1115.925)	+	(4421.204 - 1488.469) )	/ 2 )
	=	123.648	/	( (3200.519	+	2932.735)	/ 2 )
	=	123.648	/	3066.627
	=	4.03 %

Westjet Airlines's ROCE % of for the quarter that ended in Sep. 2019 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2019 )		(Q: Jun. 2019 )		(Q: Sep. 2019 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2019 )		(Q: Jun. 2019 )		(Q: Sep. 2019 )
	=	507.752	/	( ( (5139.702 - 1821.78)	+	(5186.136 - 1694.417) )	/ 2 )
	=	507.752	/	( ( 3317.922	+	3491.719 )	/ 2 )
	=	507.752	/	3404.8205
	=	14.91 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2019) EBIT data.

Westjet Airlines (FRA:WC41) 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.

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Westjet Airlines (FRA:WC41) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Westjet Airlines Ltd (FRA:WC41) » Definitions » ROCE %

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N/A

Address

22 Aerial Place N.E., Calgary, AB, CAN, T2E 3J1

Website

http://www.westjet.com

WestJet is a Canadian airline based in Calgary, Alberta. WestJet operates WestJet Vacations, which provides air, hotel, car, and excursion packages and in 2013 launched WestJet Encore, a regional airline that operates Q400 turboprops, servicing smaller destinations. It also plans to launch an ultra-low-cost carrier (branded Swoop) in 2018. WestJet services over 100 destinations in North America, Central America, the Caribbean, and Europe. The carrier generated roughly CAD 4.5 billion in revenue in 2017.

Westjet Airlines (FRA:WC41) Headlines

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