China Power Equipment (China Power Equipment) ROCE % : 17.11% (As of Sep. 2013)

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What is China Power Equipment 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. China Power Equipment's annualized ROCE % for the quarter that ended in Sep. 2013 was 17.11%.

China Power Equipment ROCE % Historical Data

The historical data trend for China Power Equipment'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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China Power Equipment ROCE % Chart

China Power Equipment Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROCE %

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27.10

39.49

29.22

22.92

20.25

China Power Equipment Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROCE %	Get a 7-Day Free Trial															25.68	18.72	12.31	15.36	17.11

China Power Equipment ROCE % Calculation

China Power Equipment's annualized ROCE % for the fiscal year that ended in Dec. 2012 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	7.764	/	( ( (37.567 - 2.58)	+	(45.313 - 3.609) )	/ 2 )
	=	7.764	/	( (34.987	+	41.704)	/ 2 )
	=	7.764	/	38.3455
	=	20.25 %

China Power Equipment's ROCE % of for the quarter that ended in Sep. 2013 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2013 )		(Q: Jun. 2013 )		(Q: Sep. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2013 )		(Q: Jun. 2013 )		(Q: Sep. 2013 )
	=	7.868	/	( ( (48.714 - 3.678)	+	(51.332 - 4.414) )	/ 2 )
	=	7.868	/	( ( 45.036	+	46.918 )	/ 2 )
	=	7.868	/	45.977
	=	17.11 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2013) EBIT data.

China Power Equipment (OTCPK:CPQQ) 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.

China Power Equipment ROCE % Related Terms

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China Power Equipment (China Power Equipment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » China Power Equipment Inc (OTCPK:CPQQ) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Yongle Industry Zone, Jingyang Industry Concentration Area, Xi’an, Shaanxi, CHN, 713702

Website

http://www.chinapower-equipment.com

China Power Equipment Inc designs, manufactures, and distributes amorphous alloy transformer cores and amorphous alloy distribution transformers in the Peoples Republic of China. Its devices are used to step down voltage at the final phase of the distribution of electricity to consumers, businesses, and industries. The Company offers its products to electricity generators and suppliers, suppliers of electrical equipment, and other electric power transformers manufacturers.

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