MEG Energy (TSX:MEG) ROCE % : 8.66% (As of Dec. 2023)

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What is MEG Energy 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. MEG Energy's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.66%.

MEG Energy ROCE % Historical Data

The historical data trend for MEG Energy'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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MEG Energy ROCE % Chart

MEG Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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2.65

-2.98

9.04

21.20

13.19

MEG Energy 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															13.73	9.16	12.83	21.88	8.66

MEG Energy ROCE % Calculation

MEG Energy'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 )
	=	837	/	( ( (7033 - 654)	+	(6898 - 584) )	/ 2 )
	=	837	/	( (6379	+	6314)	/ 2 )
	=	837	/	6346.5
	=	13.19 %

MEG Energy'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 )
	=	556	/	( ( (7146 - 626)	+	(6898 - 584) )	/ 2 )
	=	556	/	( ( 6520	+	6314 )	/ 2 )
	=	556	/	6417
	=	8.66 %

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

MEG Energy (TSX:MEG) 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.

MEG Energy ROCE % Related Terms

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MEG Energy (TSX:MEG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » MEG Energy Corp (TSX:MEG) » Definitions » ROCE %

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MEGEF:USA ME7:Germany

Address

600 - 3rd Avenue South West, 21st Floor Mail Room, Calgary, AB, CAN, T2P 0G5

Website

https://www.megenergy.com

MEG Energy Corp is an energy company focused on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. MEG transports and sells thermal oil (known as Access Western Blend or AWB) to customers throughout North America and internationally.

Executives

David Michael Granger

Senior Officer