Converge Technology Solutions (Converge Technology Solutions) ROCE % : 2.09% (As of Dec. 2023)

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What is Converge Technology Solutions 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. Converge Technology Solutions's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.09%.

Converge Technology Solutions ROCE % Historical Data

The historical data trend for Converge Technology Solutions'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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Converge Technology Solutions ROCE % Chart

Converge Technology Solutions Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.40

17.93

6.86

4.72

2.37

Converge Technology Solutions 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															0.02	3.01	1.72	2.21	2.09

Converge Technology Solutions ROCE % Calculation

Converge Technology Solutions'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 )
	=	16.89	/	( ( (1655.411 - 1058.451)	+	(1605.07 - 773.974) )	/ 2 )
	=	16.89	/	( (596.96	+	831.096)	/ 2 )
	=	16.89	/	714.028
	=	2.37 %

Converge Technology Solutions'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 )
	=	17.592	/	( ( (1596.175 - 746.997)	+	(1605.07 - 773.974) )	/ 2 )
	=	17.592	/	( ( 849.178	+	831.096 )	/ 2 )
	=	17.592	/	840.137
	=	2.09 %

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

Converge Technology Solutions (OTCPK:CTSDF) 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.

Converge Technology Solutions ROCE % Related Terms

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Converge Technology Solutions (Converge Technology Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Converge Technology Solutions Corp (OTCPK:CTSDF) » Definitions » ROCE %

Comparable Companies

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0ZB:Germany CTS:Canada

Address

161 Bay Street, Suite 2325, Toronto, ON, CAN, M5J 2T6

Website

https://www.convergetp.com

Converge Technology Solutions Corp is a Canadian company building a platform of regionally focused Hybrid IT infrastructure providers that deliver best-of-breed solutions and services in the United States. The solutions provided include multi-cloud solutions, the blockchain, resiliency, and managed services, enabling the company to address the business and IT issues that public and private-sector organizations face.