AJG (Arthur J. Gallagher) ROCE % : 6.28% (As of Dec. 2024)

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What is Arthur J. Gallagher 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. Arthur J. Gallagher's annualized ROCE % for the quarter that ended in Dec. 2024 was 6.28%.

Arthur J. Gallagher ROCE % Historical Data

The historical data trend for Arthur J. Gallagher'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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Arthur J. Gallagher ROCE % Chart

Arthur J. Gallagher Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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9.32

8.34

9.42

7.89

8.12

Arthur J. Gallagher Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															-1.07	16.52	8.61	8.86	6.28

Arthur J. Gallagher ROCE % Calculation

Arthur J. Gallagher's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	2256.1	/	( ( (51615.8 - 31064.7)	+	(64255.2 - 29260.8) )	/ 2 )
	=	2256.1	/	( (20551.1	+	34994.4)	/ 2 )
	=	2256.1	/	27772.75
	=	8.12 %

Arthur J. Gallagher's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	1790.8	/	( ( (57242.7 - 35199.5)	+	(64255.2 - 29260.8) )	/ 2 )
	=	1790.8	/	( ( 22043.2	+	34994.4 )	/ 2 )
	=	1790.8	/	28518.8
	=	6.28 %

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

Arthur J. Gallagher (NYSE:AJG) 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.

Arthur J. Gallagher ROCE % Related Terms

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Arthur J. Gallagher Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Arthur J. Gallagher & Co (NYSE:AJG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AJG:Mexico 0ITL:UK GAH:Germany A1JG34:Brazil

Address

2850 Golf Road, Rolling Meadows, IL, USA, 60008-4050

Website

https://www.ajg.com

Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. The company's risk management segment provides third-party claims adjustment to companies that choose to self-insure. Gallagher has 52,000 employees and generates 36% of its revenue internationally, primarily in Australia, Canada, New Zealand, and the UK.

Executives

Walter D. Bay	officer: VICE PRESIDENT, SECRETARY AND	1011 ELM STREET, WINNETKA IL 60093
David S Johnson	director	C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Richard C Cary	officer: Controller	C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Sherry S Barrat	director	C/O NEXTERA ENERGY, INC., 700 UNIVERSE BLVD, JUNO BEACH FL 33408
Christopher E Mead	officer: VICE PRESIDENT	2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Scott R Hudson	officer: CORPORATE VP	C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Patrick Murphy Gallagher	officer: Vice President	2850 GOLF ROAD, ROLLING MEADOWS IL 60008
Douglas K Howell	officer: Vice President and Chief	ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Thomas Joseph Gallagher	officer: VICE PRESIDENT	TWO PIERCE PLACE, ITASCA IL 60143
Joel D Cavaness	officer: Vice President	2 PIERCE PLACE, ITASCA IL 60143
William F Ziebell	officer: VICE PRESIDENT	2 PIERCE PLACE, ITASCA IL 60143
Kay W Mccurdy	director	C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
Susan E Mcgrath	other: Vice President	C/O ARTHUR J. GALLAGHER & CO., TWO PIERCE PLACE, ITASCA IL 60143
William L Bax	director	TWO PIERCE PLACE, C/O ARTHUR J. GALLAGHER & CO., ITASCA IL 60143
Mark H. Bloom	officer: Vice President	8200 JONES BRANCH DRIVE, MCLEAN VA 22102