TransAlta (TSX:TA) ROCE % : 1.46% (As of Dec. 2023)

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What is TransAlta 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. TransAlta's annualized ROCE % for the quarter that ended in Dec. 2023 was 1.46%.

TransAlta ROCE % Historical Data

The historical data trend for TransAlta'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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TransAlta ROCE % Chart

TransAlta Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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4.78

-0.94

-1.68

8.11

15.44

TransAlta 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															3.80	22.67	7.32	25.92	1.46

TransAlta ROCE % Calculation

TransAlta'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 )
	=	1140	/	( ( (10741 - 2888)	+	(8659 - 1742) )	/ 2 )
	=	1140	/	( (7853	+	6917)	/ 2 )
	=	1140	/	7385
	=	15.44 %

TransAlta'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 )
	=	108	/	( ( (9520 - 1627)	+	(8659 - 1742) )	/ 2 )
	=	108	/	( ( 7893	+	6917 )	/ 2 )
	=	108	/	7405
	=	1.46 %

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

TransAlta (TSX:TA) 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.

TransAlta ROCE % Related Terms

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TransAlta (TSX:TA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » TransAlta Corp (TSX:TA) » Definitions » ROCE %

Traded in Other Exchanges

TAC:USA TZ1:Germany TA.PR.J.PFD:Canada TA.PR.H.PFD:Canada TA.PR.F.PFD:Canada TA.PR.E.PFD:Canada TA.PR.D.PFD:Canada

Address

110 - 12th Avenue SW, Station M, Calgary, AB, CAN, T2P 2M1

Website

https://ww.transalta.com

TransAlta is an independent power producer based in Alberta, Canada. The company operates a diverse and growing fleet of electrical power generation assets in Canada, the United States, and Australia consisting of hydro, wind, solar, battery storage, gas and energy transition facilities. The majority of the company's revenues are derived from the sale of generation capacity, electricity, thermal energy, environmental attributes, and byproducts of power generation.

Executives

Aron John Willis

Senior Officer