Fortis (TSX:FTS.PR.J.PFD) ROCE %

: 5.94% (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. Fortis's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.94%.

Fortis ROCE % Historical Data

The historical data trend for Fortis'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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Fortis Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

6.48

5.29

5.07

5.26

5.74

Fortis Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																5.69	6.19	4.90	5.86	5.94

Fortis ROCE % Calculation

Fortis'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 )
	=	3375	/	( ( (64252 - 6617)	+	(65920 - 5964) )	/ 2 )
	=	3375	/	( (57635	+	59956)	/ 2 )
	=	3375	/	58795.5
	=	5.74 %

Fortis'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 )
	=	3560	/	( ( (66285 - 6368)	+	(65920 - 5964) )	/ 2 )
	=	3560	/	( ( 59917	+	59956 )	/ 2 )
	=	3560	/	59936.5
	=	5.94 %

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

Fortis (TSX:FTS.PR.J.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.

Fortis ROCE % Related Terms

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Fortis (TSX:FTS.PR.J.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Fortis Inc (TSX:FTS.PR.J.PFD) » Definitions » ROCE %

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Address

5 Springdale Street, Suite 1100, Fortis Place, St. John’s, NL, CAN, A1E 0E4

Website

https://www.fortisinc.com

Fortis owns and operates eight utility transmission and distribution subsidiaries in Canada and the United States, serving more than 3.4 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. Subsidiary ITC operates electric transmission in seven U.S. states, with more than 16,000 miles of high-voltage transmission lines in operation.

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