Brown-Forman (BSP:B1FC34) ROCE %

: 22.00% (As of Jan. 2024)

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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. Brown-Forman's annualized ROCE % for the quarter that ended in Jan. 2024 was 22.00%.

Brown-Forman ROCE % Historical Data

The historical data trend for Brown-Forman'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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Brown-Forman Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROCE %

28.00

26.81

22.63

20.10

18.85

Brown-Forman Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %																10.30	18.75	19.04	20.58	22.00

Brown-Forman ROCE % Calculation

Brown-Forman's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	5558.8	/	( ( (30301.703 - 4916.36)	+	(39052.205 - 5443.306) )	/ 2 )
	=	5558.8	/	( (25385.343	+	33608.899)	/ 2 )
	=	5558.8	/	29497.121
	=	18.85 %

Brown-Forman'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 )
	=	7377.3	/	( ( (41028.628 - 6557.502)	+	(40511.213 - 7928.138) )	/ 2 )
	=	7377.3	/	( ( 34471.126	+	32583.075 )	/ 2 )
	=	7377.3	/	33527.1005
	=	22.00 %

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

Brown-Forman (BSP:B1FC34) 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.

Brown-Forman ROCE % Related Terms

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Brown-Forman (BSP:B1FC34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Brown-Forman Corp (BSP:B1FC34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

BF.B:USA BF.A:USA BF5B:Germany

Address

850 Dixie Highway, Louisville, KY, USA, 40210

Website

https://www.brown-forman.com

Brown-Forman is a U.S.-based manufacturer of premium distilled spirits that generates close to 70% of revenues in the whiskey category, under well-known Tennessee whiskey brand Jack Daniel's and bourbon brands Woodford Reserve and Old Forester. It also manufactures and distributes tequila, vodka, rum, gin, and premium wines. The company generates 47% of sales from its home market, while the bulk of international revenues come from Europe, Australia, and Latin America. The Brown family controls over 50% of the economic interests and a 67% voting power of the company.

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