Advant-e (Advant-e) ROCE % : 55.92% (As of Dec. 2012)

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What is Advant-e 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. Advant-e's annualized ROCE % for the quarter that ended in Dec. 2012 was 55.92%.

Advant-e ROCE % Historical Data

The historical data trend for Advant-e'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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Advant-e ROCE % Chart

Advant-e Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROCE %

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34.90

41.52

51.87

46.43

57.36

Advant-e Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
ROCE %	Get a 7-Day Free Trial															52.65	39.57	48.09	49.04	55.92

Advant-e ROCE % Calculation

Advant-e's annualized ROCE % for the fiscal year that ended in Dec. 2012 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	3.031	/	( ( (6.819 - 1.067)	+	(6.177 - 1.36) )	/ 2 )
	=	3.031	/	( (5.752	+	4.817)	/ 2 )
	=	3.031	/	5.2845
	=	57.36 %

Advant-e's ROCE % of for the quarter that ended in Dec. 2012 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2012 )		(Q: Sep. 2012 )		(Q: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2012 )		(Q: Sep. 2012 )		(Q: Dec. 2012 )
	=	3.348	/	( ( (8.524 - 1.366)	+	(6.177 - 1.36) )	/ 2 )
	=	3.348	/	( ( 7.158	+	4.817 )	/ 2 )
	=	3.348	/	5.9875
	=	55.92 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2012) EBIT data.

Advant-e (OTCPK:ADVCD) 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.

Advant-e ROCE % Related Terms

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Advant-e (Advant-e) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Advant-e Corp (OTCPK:ADVCD) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2434 Esquire Drive, Beavercreek, OH, USA, 45431

Website

http://www.advant-e.com

Advant-e Corp is a United States based company engaged in the development, marketing, reselling and hosting software and provides services, through its wholly-owned subsidiaries. The services allow the customers to send and receive business documents in standard and proprietary formats. The group specializes in providing hosted electronic data interchange solutions that utilize the internet as the primary communications method.

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