CounterPath (TSX:PATH) ROCE % : 9.71% (As of Oct. 2020)

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What is CounterPath 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. CounterPath's annualized ROCE % for the quarter that ended in Oct. 2020 was 9.71%.

CounterPath ROCE % Historical Data

The historical data trend for CounterPath'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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CounterPath ROCE % Chart

CounterPath Annual Data

Trend

Apr11

Apr12

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

ROCE %

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-28.68

-30.80

-40.57

-69.56

-16.73

CounterPath Quarterly Data
	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20
ROCE %	Get a 7-Day Free Trial															-40.31	-9.71	82.49	9.63	9.71

CounterPath ROCE % Calculation

CounterPath's annualized ROCE % for the fiscal year that ended in Apr. 2020 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2020 )		(A: Apr. 2019 )		(A: Apr. 2020 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2020 )		(A: Apr. 2019 )		(A: Apr. 2020 )
	=	-1.069	/	( ( (14.883 - 6.535)	+	(19.184 - 14.749) )	/ 2 )
	=	-1.069	/	( (8.348	+	4.435)	/ 2 )
	=	-1.069	/	6.3915
	=	-16.73 %

CounterPath's ROCE % of for the quarter that ended in Oct. 2020 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2020 )		(Q: Jul. 2020 )		(Q: Oct. 2020 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2020 )		(Q: Jul. 2020 )		(Q: Oct. 2020 )
	=	0.636	/	( ( (18.203 - 11.836)	+	(17.891 - 11.163) )	/ 2 )
	=	0.636	/	( ( 6.367	+	6.728 )	/ 2 )
	=	0.636	/	6.5475
	=	9.71 %

(1) Note: The EBIT data used here is four times the quarterly (Oct. 2020) EBIT data.

CounterPath (TSX:PATH) 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.

CounterPath ROCE % Related Terms

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CounterPath (TSX:PATH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » CounterPath Corp (TSX:PATH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

505 Burrard Street, Suite 300, One Bentall Centre, Vancouver, BC, CAN, V7X 1M3

Website

https://www.counterpath.com

CounterPath Corp designs develop and sell software and services that enable enterprises and telecommunication service providers to deliver Unified Communications (UC) services, including voice, video, messaging, and collaboration functionality. Its activities consisted primarily of selling IP telephony software and related services to telecom service providers, enterprises, and channel partners serving the telecom and enterprise segments.