Canadian Pacific Kansas City (TSX:CP) ROCE %

: 7.95% (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. Canadian Pacific Kansas City's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.95%.

Canadian Pacific Kansas City ROCE % Historical Data

The historical data trend for Canadian Pacific Kansas City'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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Canadian Pacific Kansas City Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

18.29

17.83

9.44

7.09

-3.16

Canadian Pacific Kansas City Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																8.74	6.33	-33.74	6.58	7.95

Canadian Pacific Kansas City ROCE % Calculation

Canadian Pacific Kansas City'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 )
	=	-2282	/	( ( (73495 - 3213)	+	(79902 - 5710) )	/ 2 )
	=	-2282	/	( (70282	+	74192)	/ 2 )
	=	-2282	/	72237
	=	-3.16 %

Canadian Pacific Kansas City'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 )
	=	5996	/	( ( (80997 - 4389)	+	(79902 - 5710) )	/ 2 )
	=	5996	/	( ( 76608	+	74192 )	/ 2 )
	=	5996	/	75400
	=	7.95 %

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

Canadian Pacific Kansas City (TSX:CP) 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.

Canadian Pacific Kansas City ROCE % Related Terms

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Canadian Pacific Kansas City (TSX:CP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Canadian Pacific Kansas City Ltd (TSX:CP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CP:USA X88:Germany CPRL34:Brazil

Address

7550 Ogden Dale Road S.E., Calgary, AB, CAN, T2C 4X9

Website

https://www.cpr.ca

Canadian Pacific Kansas City is a Class-1 railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CP operates new single-line-haul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross border and intra Mexico freight via operating concessions on 3,300 miles of rail in Mexico. CP hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.