DSGX (The Descartes Systems Group) ROCE % : 14.10% (As of Oct. 2024)

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What is The Descartes Systems Group 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. The Descartes Systems Group's annualized ROCE % for the quarter that ended in Oct. 2024 was 14.10%.

The Descartes Systems Group ROCE % Historical Data

The historical data trend for The Descartes Systems Group'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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The Descartes Systems Group ROCE % Chart

The Descartes Systems Group Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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7.30

7.90

10.32

12.27

12.62

The Descartes Systems Group Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															11.53	12.97	14.37	14.52	14.10

The Descartes Systems Group ROCE % Calculation

The Descartes Systems Group's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	152.515	/	( ( (1316.044 - 169.595)	+	(1474.285 - 203.63) )	/ 2 )
	=	152.515	/	( (1146.449	+	1270.655)	/ 2 )
	=	152.515	/	1208.552
	=	12.62 %

The Descartes Systems Group's ROCE % of for the quarter that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	194.688	/	( ( (1565.42 - 203.733)	+	(1619.238 - 218.873) )	/ 2 )
	=	194.688	/	( ( 1361.687	+	1400.365 )	/ 2 )
	=	194.688	/	1381.026
	=	14.10 %

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

The Descartes Systems Group (NAS:DSGX) 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.

The Descartes Systems Group ROCE % Related Terms

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The Descartes Systems Group Business Description

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DC2:Germany DC2:Germany DSG:Canada

Address

120 Randall Drive, Waterloo, ON, CAN, N2V 1C6

Website

https://www.descartes.com

Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.