ARHN (Archon) ROCE %: 0.72% (As of Dec. 2010)


What is Archon ROCE %?

Archon ARHN ROCE % is 0.72% as of Dec. 2010.

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. Archon's annualized ROCE % for the quarter that ended in Dec. 2010 was 0.72%.

Archon  (OTCPK:ARHN) 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.

Archon ROCE % Related Terms

Archon ROCE % Historical Data

* Premium members only.

The historical data trend for Archon'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.

Archon ROCE % Chart

Archon Annual Data
Trend Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.79 3.74 31.60 0.20 0.65

Archon Quarterly Data
Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.59 2.19 -0.06 -0.21 0.72

Archon ROCE % Calculation

Archon's annualized ROCE % for the fiscal year that ended in Sep. 2010 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2010 )  (A: Sep. 2009 )(A: Sep. 2010 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2010 )  (A: Sep. 2009 )(A: Sep. 2010 )
=1.127/( ( (196.984 - 20.28) + (184.123 - 16.458) )/ 2 )
=1.127/( (176.704+167.665)/ 2 )
=1.127/172.1845
=0.65 %

Archon's ROCE % of for the quarter that ended in Dec. 2010 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2010 )  (Q: Sep. 2010 )(Q: Dec. 2010 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2010 )  (Q: Sep. 2010 )(Q: Dec. 2010 )
=1.184/( ( (184.123 - 16.458) + (184.169 - 21.064) )/ 2 )
=1.184/( ( 167.665 + 163.105 )/ 2 )
=1.184/165.385
=0.72 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2010) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 0.72% mean?
Archon (ARHN) has a ROCE % of 0.72% as of Dec. 2010.
Is Archon's ROCE % too high?
Archon's current ROCE % is 0.72%. The Travel & Leisure industry median ROCE % is 6.08. Archon's value of 0.72% is 88.1% below this industry median.
How does Archon's ROCE % compare to FLL and UWN?
Archon's ROCE % of 0.72% can be compared against companies in the Travel & Leisure industry. The industry median ROCE % is 6.08. Archon's value of 0.72% is 88.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Travel & Leisure company?
The median ROCE % among Travel & Leisure companies is 6.08, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Archon's current ROCE % of 0.72% is 88.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Travel & Leisure industry, the median ROCE % is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Archon's current ROCE % is 0.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Archon stock overvalued right now?
Archon (ARHN) has a current ROCE % of 0.72%. The current ROCE % is 0.72% and 88.1% below the Travel & Leisure industry median of 6.08. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Archon (ARHN), the current ROCE % is 0.72% as of Dec. 2010. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Archon Business Description

Address 2200 Casino Drive, Laughlin, NV, USA, 89029
Archon Corp is a United States based company focused on operating the Pioneer Hotel & Gambling Hall in Laughlin through its wholly-owned subsidiary. It is engaged in operating hotel and casino activities. In addition, the company also owns real estates and investment properties.