SORL Auto Parts (SORL Auto Parts) ROCE % : 13.82% (As of Sep. 2019)

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What is SORL Auto Parts 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. SORL Auto Parts's annualized ROCE % for the quarter that ended in Sep. 2019 was 13.82%.

SORL Auto Parts ROCE % Historical Data

The historical data trend for SORL Auto Parts'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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SORL Auto Parts ROCE % Chart

SORL Auto Parts Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROCE %

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8.90

7.99

13.26

17.42

19.21

SORL Auto Parts Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
ROCE %	Get a 7-Day Free Trial															17.88	13.88	27.25	16.69	13.82

SORL Auto Parts ROCE % Calculation

SORL Auto Parts's annualized ROCE % for the fiscal year that ended in Dec. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	44.838	/	( ( (582.316 - 344.641)	+	(794.372 - 565.214) )	/ 2 )
	=	44.838	/	( (237.675	+	229.158)	/ 2 )
	=	44.838	/	233.4165
	=	19.21 %

SORL Auto Parts's ROCE % of for the quarter that ended in Sep. 2019 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2019 )		(Q: Jun. 2019 )		(Q: Sep. 2019 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2019 )		(Q: Jun. 2019 )		(Q: Sep. 2019 )
	=	32.212	/	( ( (773.073 - 539.891)	+	(702.552 - 469.655) )	/ 2 )
	=	32.212	/	( ( 233.182	+	232.897 )	/ 2 )
	=	32.212	/	233.0395
	=	13.82 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2019) EBIT data.

SORL Auto Parts (NAS:SORL) 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.

SORL Auto Parts ROCE % Related Terms

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SORL Auto Parts (SORL Auto Parts) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » SORL Auto Parts Inc (NAS:SORL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

NO. 2666 KaiFaqu Avenue, Ruili Industry Area, Zhejiang Province, Ruian City, CHN, 325200

Website

http://www.sorl.cn

SORL Auto Parts Inc develops, manufactures and distributes automotive brake systems and other key safety-related auto parts to automotive original equipment manufacturers, and the related aftermarket both in China and internationally. The company is organized into two principal operating division: Commercial Vehicles Brake Systems and Passenger Vehicles Brake Systems. Its key products are air brake system, tubes and fittings, ABS and diagnosis, power steering pumps, electrical and railway parts, and new energy parts. The company's products are principally used in different types of commercial vehicles, such as trucks and buses. Most of the firm's revenue gets generated through Commercial Vehicles Brake Systems segment.

Executives

Kevin R Keating

director, officer: President

190 LAKEVIEW WAY, VERO BEACH FL 32963