Toromont Industries (Toromont Industries) ROCE % : 25.24% (As of Dec. 2023)

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What is Toromont Industries 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. Toromont Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 25.24%.

Toromont Industries ROCE % Historical Data

The historical data trend for Toromont Industries'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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Toromont Industries ROCE % Chart

Toromont Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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19.00

15.69

18.23

21.13

22.76

Toromont Industries 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															28.47	17.42	23.80	24.25	25.24

Toromont Industries ROCE % Calculation

Toromont Industries'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 )
	=	559.191	/	( ( (3078.487 - 777.872)	+	(3407.757 - 794.622) )	/ 2 )
	=	559.191	/	( (2300.615	+	2613.135)	/ 2 )
	=	559.191	/	2456.875
	=	22.76 %

Toromont Industries'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 )
	=	649.036	/	( ( (3240.833 - 711.632)	+	(3407.757 - 794.622) )	/ 2 )
	=	649.036	/	( ( 2529.201	+	2613.135 )	/ 2 )
	=	649.036	/	2571.168
	=	25.24 %

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

Toromont Industries (OTCPK:TMTNF) 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.

Toromont Industries ROCE % Related Terms

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Toromont Industries (Toromont Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Toromont Industries Ltd (OTCPK:TMTNF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

14T:Germany TIH:Canada

Address

3131 Highway 7 West, P.O. Box 5511, Concord, ON, CAN, L4K 1B7

Website

https://www.toromont.com

Toromont Industries Ltd is a Canadian industrial company. The company operates two business segments: Equipment Group and CIMCO. The larger segment by revenue, Equipment Group includes a Caterpillar dealership and rental operation of construction equipment. CIMCO offers solutions for the design, engineering, fabrication, and installation of industrial and recreational refrigeration systems. The company operates majorly in Canada and derives a smaller portion of sales from the United States of America.