Paramount Resources (Paramount Resources) ROCE % : 13.22% (As of Dec. 2023)

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What is Paramount Resources 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. Paramount Resources's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.22%.

Paramount Resources ROCE % Historical Data

The historical data trend for Paramount Resources'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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Paramount Resources ROCE % Chart

Paramount Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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1.83

1.27

10.70

22.06

15.00

Paramount Resources 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															32.43	26.06	10.30	11.87	13.22

Paramount Resources ROCE % Calculation

Paramount Resources'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 )
	=	451.849	/	( ( (3192.713 - 207.876)	+	(3271.243 - 233.304) )	/ 2 )
	=	451.849	/	( (2984.837	+	3037.939)	/ 2 )
	=	451.849	/	3011.388
	=	15.00 %

Paramount Resources'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 )
	=	395.648	/	( ( (3181.657 - 232.577)	+	(3271.243 - 233.304) )	/ 2 )
	=	395.648	/	( ( 2949.08	+	3037.939 )	/ 2 )
	=	395.648	/	2993.5095
	=	13.22 %

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

Paramount Resources (OTCPK:PRMRF) 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.

Paramount Resources ROCE % Related Terms

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Paramount Resources (Paramount Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Paramount Resources Ltd (OTCPK:PRMRF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

PQ51:Germany POU:Canada

Address

888 - 3rd Street SW, Suite 4700, Calgary, AB, CAN, T2P 5C5

Website

https://www.paramountres.com

Paramount Resources Ltd is a Canadian energy company that explores, develops, produces, and markets natural gas, crude oil, and natural gas liquids. The company takes part in exploration and production in Alberta and British Columbia. Sales for Paramount's products are priced in a multitude of markets that span the United States and Canada. Depending on the product, contracts can have daily, monthly, or long-term agreements. Assets for exploration and production are acquired by way of royalties that are paid to provincial governments and freehold landowners.

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