Hammond Power Solutions (Hammond Power Solutions) ROCE % : 39.46% (As of Dec. 2023)

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What is Hammond Power 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. Hammond Power Solutions's annualized ROCE % for the quarter that ended in Dec. 2023 was 39.46%.

Hammond Power Solutions ROCE % Historical Data

The historical data trend for Hammond Power 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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Hammond Power Solutions ROCE % Chart

Hammond Power Solutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.19

18.51

17.67

36.02

40.09

Hammond Power 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															45.84	45.63	37.59	38.54	39.46

Hammond Power Solutions ROCE % Calculation

Hammond Power 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 )
	=	63.591	/	( ( (222.799 - 86.623)	+	(304.37 - 123.334) )	/ 2 )
	=	63.591	/	( (136.176	+	181.036)	/ 2 )
	=	63.591	/	158.606
	=	40.09 %

Hammond Power 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 )
	=	68.692	/	( ( (276.226 - 109.067)	+	(304.37 - 123.334) )	/ 2 )
	=	68.692	/	( ( 167.159	+	181.036 )	/ 2 )
	=	68.692	/	174.0975
	=	39.46 %

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

Hammond Power Solutions (OTCPK:HMDPF) 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.

Hammond Power Solutions ROCE % Related Terms

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Hammond Power Solutions (Hammond Power Solutions) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hammond Power Solutions Inc (OTCPK:HMDPF) » Definitions » ROCE %

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T11:Germany HPS.A:Canada

Address

595 Southgate Drive, Guelph, ON, CAN, N1G 3W6

Website

https://www.hammondpowersolutions.com

Hammond Power Solutions Inc is engaged in designing and manufacturing of custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico.

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