Solution Financial (Solution Financial) ROCE % : 5.24% (As of Jan. 2024)

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What is Solution Financial 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. Solution Financial's annualized ROCE % for the quarter that ended in Jan. 2024 was 5.24%.

Solution Financial ROCE % Historical Data

The historical data trend for Solution Financial'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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Solution Financial ROCE % Chart

Solution Financial Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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4.95

9.09

8.59

7.73

2.58

Solution Financial Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															-5.11	5.91	8.25	1.68	5.24

Solution Financial ROCE % Calculation

Solution Financial's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	0.389	/	( ( (21.796 - 7.068)	+	(21.593 - 6.108) )	/ 2 )
	=	0.389	/	( (14.728	+	15.485)	/ 2 )
	=	0.389	/	15.1065
	=	2.58 %

Solution Financial's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	0.796	/	( ( (21.593 - 6.108)	+	(20.699 - 5.792) )	/ 2 )
	=	0.796	/	( ( 15.485	+	14.907 )	/ 2 )
	=	0.796	/	15.196
	=	5.24 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Solution Financial (OTCPK:SLNFF) 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.

Solution Financial ROCE % Related Terms

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Solution Financial (Solution Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Solution Financial Inc (OTCPK:SLNFF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SFI:Canada

Address

Unit 137 - 8680 Cambie Road, Richmond, BC, CAN, V6X 4K1

Website

https://www.solution.financial

Solution Financial Inc is engaged in retail sales, leases, and financing for high-end automotive vehicles, ultra-luxury vehicles, boats, and commercial equipment. The firm generates the majority of its revenue through the sales and leases of vehicles.

Solution Financial (Solution Financial) Headlines

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