Russel Metals (TSX:RUS) ROCE % : 13.43% (As of Dec. 2023)

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What is Russel Metals 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. Russel Metals's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.43%.

Russel Metals ROCE % Historical Data

The historical data trend for Russel Metals'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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Russel Metals ROCE % Chart

Russel Metals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.74

4.61

41.04

27.99

18.41

Russel Metals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															16.36	20.25	23.00	16.18	13.43

Russel Metals ROCE % Calculation

Russel Metals'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 )
	=	377.5	/	( ( (2506.9 - 501.5)	+	(2570.1 - 473.5) )	/ 2 )
	=	377.5	/	( (2005.4	+	2096.6)	/ 2 )
	=	377.5	/	2051
	=	18.41 %

Russel Metals'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 )
	=	282.8	/	( ( (2632.4 - 516.8)	+	(2570.1 - 473.5) )	/ 2 )
	=	282.8	/	( ( 2115.6	+	2096.6 )	/ 2 )
	=	282.8	/	2106.1
	=	13.43 %

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

Russel Metals (TSX:RUS) 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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Russel Metals (TSX:RUS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Russel Metals Inc (TSX:RUS) » Definitions » ROCE %

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RUSMF:USA RMZ:Germany

Address

6600 Financial Drive, Mississauga, ON, CAN, L5N 7J6

Website

https://www.russelmetals.com

Russel Metals Inc is a Canada-based metal distribution company. The company conducts business primarily through three metals distribution segments: metals service centers; energy products; and steel distributors. The metal service centers provide processing and distribution services to a broad base of end-users. The energy products segment distributes oil country tubular goods, line pipe, tubes, valves, and fittings, primarily to the energy industry in Western Canada and the U.S. The steel distributors segment acts as master distributors selling steel in large volumes to other steel service centers and equipment manufacturers mainly on an "as is" basis. The company generates all of its revenue from the North American market.

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