Ardmore Shipping (Ardmore Shipping) ROCE %

: 18.73% (As of Dec. 2023)

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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. Ardmore Shipping's annualized ROCE % for the quarter that ended in Dec. 2023 was 18.73%.

Ardmore Shipping ROCE % Historical Data

The historical data trend for Ardmore Shipping'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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Ardmore Shipping Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

0.19

1.51

-3.22

23.39

19.58

Ardmore Shipping Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																36.81	28.31	16.88	15.00	18.73

Ardmore Shipping ROCE % Calculation

Ardmore Shipping'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 )
	=	130.029	/	( ( (723.859 - 52.929)	+	(690.951 - 33.839) )	/ 2 )
	=	130.029	/	( (670.93	+	657.112)	/ 2 )
	=	130.029	/	664.021
	=	19.58 %

Ardmore Shipping'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 )
	=	121.864	/	( ( (686.4 - 42.58)	+	(690.951 - 33.839) )	/ 2 )
	=	121.864	/	( ( 643.82	+	657.112 )	/ 2 )
	=	121.864	/	650.466
	=	18.73 %

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

Ardmore Shipping (NYSE:ASC) 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.

Ardmore Shipping ROCE % Related Terms

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Ardmore Shipping (Ardmore Shipping) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Ardmore Shipping Corp (NYSE:ASC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

A61:Germany A61:Germany

Address

69 Pitts Bay Road, Belvedere Building, Ground Floor, Pembroke, Hamilton, BMU, HM08

Website

https://www.ardmoreshipping.com

Ardmore Shipping Corp owns and operates a fleet of mid-size product and chemical tankers, which provide seaborne transportation of petroleum products and chemicals across the globe. The company is focused on fuel efficiency and cost leadership, and it provides its shipping services to customers through voyage charters, commercial pools, and time charters. Its main customers are oil majors, national oil companies, oil and chemical traders, and chemical companies.