Berkshire Homes (Berkshire Homes) ROCE % : 0.10% (As of Aug. 2015)

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What is Berkshire Homes 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. Berkshire Homes's annualized ROCE % for the quarter that ended in Aug. 2015 was 0.10%.

Berkshire Homes ROCE % Historical Data

The historical data trend for Berkshire Homes'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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Berkshire Homes ROCE % Chart

Berkshire Homes Annual Data

Trend

Nov11

Nov12

Nov13

Nov14

ROCE %

-102.62

4.59

Berkshire Homes Quarterly Data
	Feb11	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15
ROCE %	Get a 7-Day Free Trial														38.23	-6.08	1.68	-4.22	0.10

Berkshire Homes ROCE % Calculation

Berkshire Homes's annualized ROCE % for the fiscal year that ended in Nov. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2014 )		(A: Nov. 2013 )		(A: Nov. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2014 )		(A: Nov. 2013 )		(A: Nov. 2014 )
	=	0.214	/	( ( (2.076 - 0.623)	+	(8.922 - 1.044) )	/ 2 )
	=	0.214	/	( (1.453	+	7.878)	/ 2 )
	=	0.214	/	4.6655
	=	4.59 %

Berkshire Homes's ROCE % of for the quarter that ended in Aug. 2015 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Aug. 2015 )		(Q: May. 2015 )		(Q: Aug. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Aug. 2015 )		(Q: May. 2015 )		(Q: Aug. 2015 )
	=	0.008	/	( ( (8.815 - 1.133)	+	(8.966 - 1.212) )	/ 2 )
	=	0.008	/	( ( 7.682	+	7.754 )	/ 2 )
	=	0.008	/	7.718
	=	0.10 %

(1) Note: The EBIT data used here is four times the quarterly (Aug. 2015) EBIT data.

Berkshire Homes (OTCPK:BKSH) 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.

Berkshire Homes ROCE % Related Terms

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Berkshire Homes (Berkshire Homes) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Berkshire Homes Inc (OTCPK:BKSH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2375 East Camelback Road, Suite 600, Phoenix, AZ, USA, 85016

Website

http://www.berkshirenewhomes.com

Berkshire Homes Inc is a United States based company engaged in acquiring and rehabilitating distressed residential real estate properties that are below market value, rehabilitates them, and then sell or lease them, depending on which approach will generate the highest return.

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