Equity Commonwealth (Equity Commonwealth) ROCE % : -0.52% (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. Equity Commonwealth's annualized ROCE % for the quarter that ended in Dec. 2023 was -0.52%.

Equity Commonwealth ROCE % Historical Data

The historical data trend for Equity Commonwealth'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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Equity Commonwealth Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.95

13.91

-0.73

-0.31

-0.82

Equity Commonwealth 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															-0.42	-0.70	-1.80	-0.51	-0.52

Equity Commonwealth ROCE % Calculation

Equity Commonwealth'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 )
	=	-21.356	/	( ( (2854.885 - 31.153)	+	(2425.041 - 34.928) )	/ 2 )
	=	-21.356	/	( (2823.732	+	2390.113)	/ 2 )
	=	-21.356	/	2606.9225
	=	-0.82 %

Equity Commonwealth'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 )
	=	-12.336	/	( ( (2393.786 - 31.55)	+	(2425.041 - 34.928) )	/ 2 )
	=	-12.336	/	( ( 2362.236	+	2390.113 )	/ 2 )
	=	-12.336	/	2376.1745
	=	-0.52 %

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

Equity Commonwealth (NYSE:EQCpD.PFD) 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.

Equity Commonwealth ROCE % Related Terms

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Equity Commonwealth (Equity Commonwealth) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Equity Commonwealth (NYSE:EQCpD.PFD) » Definitions » ROCE %

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EQC:USA

Address

Two North Riverside Plaza, Suite 2100, Chicago, IL, USA, 60606

Website

https://www.eqcre.com

Equity Commonwealth is a real estate investment trust engaged in the acquisition, ownership, and operation of primarily office buildings located throughout the United States. The vast majority of the company's real estate portfolio comprises office assets. These properties are fairly evenly dispersed between many of America's major urban markets, notably Washington, Austin, and Denver. Equity Commonwealth derives the vast majority of its income in the form of rental revenue from tenants occupying its offices. The company's largest tenants in terms of revenue generation include a variety of hiking, household goods, publishing, and financial firms.