Algonquin Power & Utilities (TSX:AQN.PR.D.PFD) ROCE %

: 6.43% (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. Algonquin Power & Utilities's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.43%.

Algonquin Power & Utilities ROCE % Historical Data

The historical data trend for Algonquin Power & Utilities'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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Algonquin Power & Utilities Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.70

8.62

2.67

-0.50

1.53

Algonquin Power & Utilities 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															-0.95	8.82	-5.49	-3.53	6.43

Algonquin Power & Utilities ROCE % Calculation

Algonquin Power & Utilities'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 )
	=	337.993	/	( ( (23947.112 - 2084.564)	+	(24650.506 - 2260.837) )	/ 2 )
	=	337.993	/	( (21862.548	+	22389.669)	/ 2 )
	=	337.993	/	22126.1085
	=	1.53 %

Algonquin Power & Utilities'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 )
	=	1435.812	/	( ( (24332.481 - 2037.651)	+	(24650.506 - 2260.837) )	/ 2 )
	=	1435.812	/	( ( 22294.83	+	22389.669 )	/ 2 )
	=	1435.812	/	22342.2495
	=	6.43 %

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

Algonquin Power & Utilities (TSX:AQN.PR.D.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.

Algonquin Power & Utilities ROCE % Related Terms

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Algonquin Power & Utilities (TSX:AQN.PR.D.PFD) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Algonquin Power & Utilities Corp (TSX:AQN.PR.D.PFD) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AQNU:USA AGQPF.PFD:USA AQN:USA 751:Germany AQN.PR.A.PFD:Canada AQN:Canada

Address

354 Davis Road, Oakville, ON, CAN, L6J 2X1

Website

https://www.algonquinpower.com

Algonquin Power & Utilities Corp, a parent company of Liberty, is a diversified international generation, transmission, and distribution utility with over $16 billion of total assets. Through its two business groups, the Regulated Services Group and the Renewable Energy Group, AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN provides renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities.

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