Allocate Software (LSE:ALLA) ROCE % : 47.67% (As of May. 2014)

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What is Allocate Software 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. Allocate Software's annualized ROCE % for the quarter that ended in May. 2014 was 47.67%.

Allocate Software ROCE % Historical Data

The historical data trend for Allocate Software'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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Allocate Software ROCE % Chart

Allocate Software Annual Data

Trend

May05

May06

May07

May08

May09

May10

May11

May12

May13

May14

ROCE %

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8.73

3.39

-18.85

-10.77

14.39

Allocate Software Semi-Annual Data
	Nov04	May05	Nov05	May06	Nov06	May07	Nov07	May08	Nov08	May09	Nov09	May10	Nov10	May11	Nov11	May12	Nov12	May13	Nov13	May14
ROCE %	Get a 7-Day Free Trial															20.29	-23.28	2.34	-20.05	47.67

Allocate Software ROCE % Calculation

Allocate Software's annualized ROCE % for the fiscal year that ended in May. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2014 )		(A: May. 2013 )		(A: May. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2014 )		(A: May. 2013 )		(A: May. 2014 )
	=	2.915	/	( ( (41.687 - 23.222)	+	(42.508 - 20.471) )	/ 2 )
	=	2.915	/	( (18.465	+	22.037)	/ 2 )
	=	2.915	/	20.251
	=	14.39 %

Allocate Software's ROCE % of for the quarter that ended in May. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: May. 2014 )		(Q: Nov. 2013 )		(Q: May. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: May. 2014 )		(Q: Nov. 2013 )		(Q: May. 2014 )
	=	9.444	/	( ( (33.633 - 16.045)	+	(42.508 - 20.471) )	/ 2 )
	=	9.444	/	( ( 17.588	+	22.037 )	/ 2 )
	=	9.444	/	19.8125
	=	47.67 %

(1) Note: The EBIT data used here is two times the semi-annual (May. 2014) EBIT data.

Allocate Software (LSE:ALLA) 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.

Allocate Software ROCE % Related Terms

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Allocate Software (LSE:ALLA) Business Description

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Website

http://www.allocatesoftware.com

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.

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