Collins Foods (ASX:CKF) ROCE % : 10.16% (As of Oct. 2023)

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What is Collins Foods 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. Collins Foods's annualized ROCE % for the quarter that ended in Oct. 2023 was 10.16%.

Collins Foods ROCE % Historical Data

The historical data trend for Collins Foods'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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Collins Foods ROCE % Chart

Collins Foods Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROCE %

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11.06

7.61

8.80

10.43

4.17

Collins Foods Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
ROCE %	Get a 7-Day Free Trial															10.00	10.85	5.68	2.73	10.16

Collins Foods ROCE % Calculation

Collins Foods's annualized ROCE % for the fiscal year that ended in Apr. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Apr. 2023 )		(A: Apr. 2022 )		(A: Apr. 2023 )
	=	48.097	/	( ( (1282.971 - 166.489)	+	(1370.372 - 179.158) )	/ 2 )
	=	48.097	/	( (1116.482	+	1191.214)	/ 2 )
	=	48.097	/	1153.848
	=	4.17 %

Collins Foods's ROCE % of for the quarter that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2023 )		(Q: Apr. 2023 )		(Q: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2023 )		(Q: Apr. 2023 )		(Q: Oct. 2023 )
	=	121.956	/	( ( (1370.372 - 179.158)	+	(1390.389 - 181.302) )	/ 2 )
	=	121.956	/	( ( 1191.214	+	1209.087 )	/ 2 )
	=	121.956	/	1200.1505
	=	10.16 %

(1) Note: The EBIT data used here is two times the semi-annual (Oct. 2023) EBIT data.

Collins Foods (ASX:CKF) 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.

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Collins Foods (ASX:CKF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Collins Foods Ltd (ASX:CKF) » Definitions » ROCE %

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CLLFF:USA

Address

485 Kingsford Smith Drive, Level 3, KSD1, Hamilton, QLD, AUS, 4007

Website

https://www.collinsfoods.com

Collins Foods is an operator of quick service restaurants, or QSRs. It franchises restaurant brands from U.S.-listed Yum Brands, including KFC in Australia, Germany, and the Netherlands, as well as Taco Bell in Australia. Most of its revenue and earnings are generated in Australia, where Collins is the largest franchisee of KFC, ahead of Restaurant Brands New Zealand.In the Netherlands, Collins has signed a corporate franchise agreement, giving it more control over development and oversight of the Dutch franchisee network.Earnings growth is underpinned by its store network expansion, both new restaurants and acquisitions of existing sites. Competitive pricing is key to maintaining share in the QSR market, and the company has generally increased at or below consumer price index growth.

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