Pembina Pipeline (TSX:PPL.PR.Q.PFD) ROCE %

: 12.76% (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. Pembina Pipeline's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.76%.

Pembina Pipeline ROCE % Historical Data

The historical data trend for Pembina Pipeline'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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Pembina Pipeline Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

6.57

5.84

7.17

12.59

9.04

Pembina Pipeline Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																6.08	8.12	7.94	7.71	12.76

Pembina Pipeline ROCE % Calculation

Pembina Pipeline'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 )
	=	2659	/	( ( (31487 - 2058)	+	(32618 - 3221) )	/ 2 )
	=	2659	/	( (29429	+	29397)	/ 2 )
	=	2659	/	29413
	=	9.04 %

Pembina Pipeline'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 )
	=	3728	/	( ( (30967 - 1914)	+	(32618 - 3221) )	/ 2 )
	=	3728	/	( ( 29053	+	29397 )	/ 2 )
	=	3728	/	29225
	=	12.76 %

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

Pembina Pipeline (TSX:PPL.PR.Q.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.

Pembina Pipeline ROCE % Related Terms

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Pembina Pipeline (TSX:PPL.PR.Q.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Pembina Pipeline Corp (TSX:PPL.PR.Q.PFD) » Definitions » ROCE %

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Address

585 - 8th Avenue S.W., Suite 4000, Calgary, AB, CAN, T2P 1G1

Website

https://www.pembina.com

Pembina Pipeline is a midstream company serving the Canadian and North American (primarily Bakken) markets with an integrated product portfolio. Its assets include pipelines and gas gathering as well as assets across fractionation, storage, and propane exports.

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