Algoma Steel Group (TSX:ASTL) ROCE % : -15.63% (As of Dec. 2023)

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What is Algoma Steel Group 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. Algoma Steel Group's annualized ROCE % for the quarter that ended in Dec. 2023 was -15.63%.

Algoma Steel Group ROCE % Historical Data

The historical data trend for Algoma Steel Group'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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Algoma Steel Group ROCE % Chart

Algoma Steel Group Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

ROCE %

-7.26

0.63

72.30

19.15

Algoma Steel Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial											-14.38	-1.47	33.38	9.51	-15.63

Algoma Steel Group ROCE % Calculation

Algoma Steel Group's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	408.7	/	( ( (2693.6 - 537.5)	+	(2455.6 - 343.4) )	/ 2 )
	=	408.7	/	( (2156.1	+	2112.2)	/ 2 )
	=	408.7	/	2134.15
	=	19.15 %

Algoma Steel Group'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 )
	=	-348.4	/	( ( (2713.1 - 441.3)	+	(2651.6 - 466.6) )	/ 2 )
	=	-348.4	/	( ( 2271.8	+	2185 )	/ 2 )
	=	-348.4	/	2228.4
	=	-15.63 %

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

Algoma Steel Group (TSX:ASTL) 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.

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Algoma Steel Group (TSX:ASTL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Algoma Steel Group Inc (TSX:ASTL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ASTL:USA 9ZY:Germany

Address

105 West Street, Sault Ste., Marie, ON, CAN, P6A 7B4

Website

https://www.algoma.com

Algoma Steel Group Inc is a Canadian company engaged in the production of clean and consistent light gauge steel. The company offers a range of hot and cold rolled steel sheet and plate products. The firm operates in a single segment of basic steel production including sheets, plates, slabs, and freights. The Company's revenue is generated from contracts to produce, ship, and deliver steel products Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from domestic sales. The company generates the majority of its revenue from the sale of Steel sheets and strips.