Alabama Power Co (Alabama Power Co) ROCE % : 7.54% (As of Jun. 2022)

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What is Alabama Power Co 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. Alabama Power Co's annualized ROCE % for the quarter that ended in Jun. 2022 was 7.54%.

Alabama Power Co ROCE % Historical Data

The historical data trend for Alabama Power Co'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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Alabama Power Co ROCE % Chart

Alabama Power Co Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROCE %

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12.82

6.60

6.52

6.61

6.67

Alabama Power Co Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
ROCE %	Get a 7-Day Free Trial															7.19	9.98	1.96	7.06	7.54

Alabama Power Co ROCE % Calculation

Alabama Power Co's annualized ROCE % for the fiscal year that ended in Dec. 2021 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2021 )		(A: Dec. 2020 )		(A: Dec. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2021 )		(A: Dec. 2020 )		(A: Dec. 2021 )
	=	1965	/	( ( (30803 - 2199)	+	(32982 - 2702) )	/ 2 )
	=	1965	/	( (28604	+	30280)	/ 2 )
	=	1965	/	29442
	=	6.67 %

Alabama Power Co's ROCE % of for the quarter that ended in Jun. 2022 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2022 )		(Q: Mar. 2022 )		(Q: Jun. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2022 )		(Q: Mar. 2022 )		(Q: Jun. 2022 )
	=	2396	/	( ( (33570 - 1872)	+	(33910 - 2063) )	/ 2 )
	=	2396	/	( ( 31698	+	31847 )	/ 2 )
	=	2396	/	31772.5
	=	7.54 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2022) EBIT data.

Alabama Power Co (OTCPK:ALBMP.PFD) 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.

Alabama Power Co ROCE % Related Terms

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Alabama Power Co (Alabama Power Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Alabama Power Co (OTCPK:ALBMP.PFD) » Definitions » ROCE %

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Address

600 North 18th Street, Birmingham, AL, USA, 35291

Website

http://www.alabamapower.com

Alabama Power Co operates in the utility sector. The company supplies electricity and stellar service to homes, businesses and industries in the southern two-thirds of Alabama.

Alabama Power Co (Alabama Power Co) Headlines

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