Richelieu Hardware (TSX:RCH) ROCE % : 8.68% (As of Feb. 2024)

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What is Richelieu Hardware 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. Richelieu Hardware's annualized ROCE % for the quarter that ended in Feb. 2024 was 8.68%.

Richelieu Hardware ROCE % Historical Data

The historical data trend for Richelieu Hardware'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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Richelieu Hardware ROCE % Chart

Richelieu Hardware Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

ROCE %

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17.55

20.28

28.47

28.14

16.84

Richelieu Hardware Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															14.57	18.70	17.55	15.97	8.68

Richelieu Hardware ROCE % Calculation

Richelieu Hardware's annualized ROCE % for the fiscal year that ended in Nov. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2023 )		(A: Nov. 2022 )		(A: Nov. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2023 )		(A: Nov. 2022 )		(A: Nov. 2023 )
	=	169.477	/	( ( (1283.865 - 348.223)	+	(1314.963 - 237.704) )	/ 2 )
	=	169.477	/	( (935.642	+	1077.259)	/ 2 )
	=	169.477	/	1006.4505
	=	16.84 %

Richelieu Hardware's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	94.968	/	( ( (1314.963 - 237.704)	+	(1344.799 - 234.174) )	/ 2 )
	=	94.968	/	( ( 1077.259	+	1110.625 )	/ 2 )
	=	94.968	/	1093.942
	=	8.68 %

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

Richelieu Hardware (TSX:RCH) 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.

Richelieu Hardware ROCE % Related Terms

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Richelieu Hardware (TSX:RCH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Richelieu Hardware Ltd (TSX:RCH) » Definitions » ROCE %

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Traded in Other Exchanges

RHUHF:USA

Address

7900 Henri-Bourassa Boulevard West, Ville Saint-Laurent, Montreal, QC, CAN, H4S 1V4

Website

https://www.richelieu.com

Richelieu Hardware Ltd is a Canada-based company that imports, manufactures, and distributes specialty hardware and complementary products. Headquartered in Montreal, the company operates across Canada and the eastern and midwestern regions of the United States. The majority of the company's sales are derived from its operations in Canada. Richelieu's products include furniture, glass, decorative, window, and door hardware, lighting systems, and kitchen and closet storage. The firm primarily serves home furnishing manufacturers, residential and commercial woodworkers, hardware retailers, and renovation superstores.

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