Alight (Alight) ROCE % : 4.57% (As of Dec. 2018)

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What is Alight 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. Alight's annualized ROCE % for the quarter that ended in Dec. 2018 was 4.57%.

Alight ROCE % Historical Data

The historical data trend for Alight'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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Alight ROCE % Chart

Alight Annual Data

Trend

Dec16

Dec17

Dec18

ROCE %

4.57

Alight Semi-Annual Data
	Dec16	Dec17	Dec18
ROCE %	-	-	4.57

Alight ROCE % Calculation

Alight's annualized ROCE % for the fiscal year that ended in Dec. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	204	/	( ( (6257 - 1760)	+	(5682 - 1249) )	/ 2 )
	=	204	/	( (4497	+	4433)	/ 2 )
	=	204	/	4465
	=	4.57 %

Alight's ROCE % of for the quarter that ended in Dec. 2018 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2018 )		(Q: Dec. 2017 )		(Q: Dec. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2018 )		(Q: Dec. 2017 )		(Q: Dec. 2018 )
	=	204	/	( ( (6257 - 1760)	+	(5682 - 1249) )	/ 2 )
	=	204	/	( ( 4497	+	4433 )	/ 2 )
	=	204	/	4465
	=	4.57 %

(1) Note: The EBIT data used here is one times the annual (Dec. 2018) EBIT data.

Alight (NAS:ALIT) 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.

Alight ROCE % Related Terms

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