Howmet Aerospace (BSP:ARNC34) ROCE % : 16.36% (As of Mar. 2024)

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What is Howmet Aerospace 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. Howmet Aerospace's annualized ROCE % for the quarter that ended in Mar. 2024 was 16.36%.

Howmet Aerospace ROCE % Historical Data

The historical data trend for Howmet Aerospace'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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Howmet Aerospace ROCE % Chart

Howmet Aerospace Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.94

4.76

6.53

9.06

13.23

Howmet Aerospace Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															12.59	13.07	13.62	14.78	16.36

Howmet Aerospace ROCE % Calculation

Howmet Aerospace's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	5845.461	/	( ( (53791.577 - 7773.683)	+	(51095.114 - 8741.243) )	/ 2 )
	=	5845.461	/	( (46017.894	+	42353.871)	/ 2 )
	=	5845.461	/	44185.8825
	=	13.23 %

Howmet Aerospace's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	7011.56	/	( ( (51095.114 - 8741.243)	+	(51839.718 - 8455.7) )	/ 2 )
	=	7011.56	/	( ( 42353.871	+	43384.018 )	/ 2 )
	=	7011.56	/	42868.9445
	=	16.36 %

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

Howmet Aerospace (BSP:ARNC34) 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.

Howmet Aerospace ROCE % Related Terms

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Howmet Aerospace (BSP:ARNC34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Howmet Aerospace Inc (BSP:ARNC34) » Definitions » ROCE %

Comparable Companies

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HWM.PR.PFD:USA HWM:USA 48Z:Germany HWMCL:Chile HWM:Austria

Address

201 Isabella Street, Suite 200, Pittsburgh, PA, USA, 15212-5872

Website

https://www.howmet.com

Howmet Aerospace Inc produces products that are majorly used in aerospace, commercial transportation, and industrial and other markets. The company seeks to provide its customers with innovative solutions through offering differentiated products such as airfoils with advanced cooling and coatings for extreme temperature applications, specially designed fasteners for lightweight composite airframe construction, reduced assembly costs, and lightning strike protection and lightweight aluminum commercial wheels. It has four reportable segments namely, Engine Products, Fastening Systems, Engineered Structures and Forged Wheels.

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