Primo Water (TSX:PRMW) ROCE % : 4.96% (As of Mar. 2024)

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What is Primo Water 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. Primo Water's annualized ROCE % for the quarter that ended in Mar. 2024 was 4.96%.

Primo Water ROCE % Historical Data

The historical data trend for Primo Water'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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Primo Water ROCE % Chart

Primo Water Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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2.62

-2.40

2.66

5.02

5.31

Primo Water Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															2.94	6.93	8.95	2.17	4.96

Primo Water ROCE % Calculation

Primo Water'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 )
	=	217.608	/	( ( (4981.619 - 938.18)	+	(4726.457 - 571.656) )	/ 2 )
	=	217.608	/	( (4043.439	+	4154.801)	/ 2 )
	=	217.608	/	4099.12
	=	5.31 %

Primo Water's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	206.832	/	( ( (4726.457 - 571.656)	+	(4737.194 - 544.147) )	/ 2 )
	=	206.832	/	( ( 4154.801	+	4193.047 )	/ 2 )
	=	206.832	/	4173.924
	=	4.96 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Primo Water (TSX:PRMW) 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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Primo Water (TSX:PRMW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Primo Water Corp (TSX:PRMW) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

PRMW:USA GC6:Germany

Address

1200 Britannia Road East, Mississauga, ON, CAN, L4W 4T5

Website

https://www.primowatercorp.com

Primo Water is a pure-play water provider with a variety of products and services, including water delivery, exchange, refill/filtration, and water dispensers in 21 countries, mostly in North America and Europe. The firm usually initiates the customer relationship with the sale of water dispensers, and then generates recurring revenue via the water direct and exchange services (two thirds of total sales) by delivering large-format (typically three gallons or greater) water bottles to residential and commercial customers for use atop or inside the dispensers. Primo generates 75% of revenue and all its profits in North America, while its European operation has yet to turn a profit.