ATS (TSX:ATS) ROCE % : 12.36% (As of Sep. 2023)

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What is ATS 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. ATS's annualized ROCE % for the quarter that ended in Sep. 2023 was 12.36%.

ATS ROCE % Historical Data

The historical data trend for ATS'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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ATS ROCE % Chart

ATS Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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9.96

6.81

7.64

9.95

9.50

ATS Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															9.10	9.10	8.27	12.42	12.36

ATS ROCE % Calculation

ATS'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 )
	=	224.45	/	( ( (3069.397 - 845.009)	+	(3543.793 - 1043.571) )	/ 2 )
	=	224.45	/	( (2224.388	+	2500.222)	/ 2 )
	=	224.45	/	2362.305
	=	9.50 %

ATS's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	334.148	/	( ( (3560.513 - 947.752)	+	(3766.947 - 972.902) )	/ 2 )
	=	334.148	/	( ( 2612.761	+	2794.045 )	/ 2 )
	=	334.148	/	2703.403
	=	12.36 %

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

ATS (TSX:ATS) 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.

ATS ROCE % Related Terms

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ATS (TSX:ATS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ATS Corp (TSX:ATS) » Definitions » ROCE %

Comparable Companies

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ATS:USA

Address

730 Fountain Street North, Building 2, Cambridge, ON, CAN, N3H 4R7

Website

https://www.atsautomation.com

ATS Corp is a Canada-based company that provides automation systems. The company designs and builds customized automated manufacturing and testing systems for customers, and provides pre- and post-automation services. The company's products comprise conveyor systems, automated electrified monorails, tray handlers, laser systems, and other hardware and software products. The company also provides pre-automation solutions, including strategic direction and planning services, as well as aftermarket support. The company's clients come from the life sciences, food and beverage transportation, consumer products and electronics, and energy sectors. The company generates the majority of its sales from the North American and European markets.