Allison Transmission Holdings (FRA:1A7) ROCE % : 22.46% (As of Sep. 2024)

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What is Allison Transmission Holdings 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. Allison Transmission Holdings's annualized ROCE % for the quarter that ended in Sep. 2024 was 22.46%.

Allison Transmission Holdings ROCE % Historical Data

The historical data trend for Allison Transmission Holdings'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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Allison Transmission Holdings ROCE % Chart

Allison Transmission Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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23.26

12.44

17.62

19.22

21.14

Allison Transmission Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															20.05	20.21	20.25	22.36	22.46

Allison Transmission Holdings ROCE % Calculation

Allison Transmission Holdings'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 )
	=	856.478	/	( ( (4409.424 - 453.12)	+	(4607.925 - 459.417) )	/ 2 )
	=	856.478	/	( (3956.304	+	4148.508)	/ 2 )
	=	856.478	/	4052.406
	=	21.14 %

Allison Transmission Holdings's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	973.08	/	( ( (4808.504 - 474.719)	+	(4836.568 - 507.263) )	/ 2 )
	=	973.08	/	( ( 4333.785	+	4329.305 )	/ 2 )
	=	973.08	/	4331.545
	=	22.46 %

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

Allison Transmission Holdings (FRA:1A7) 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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Allison Transmission Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Allison Transmission Holdings Inc (FRA:1A7) » Definitions » ROCE %

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ALSN:USA

Address

One Allison Way, Indianapolis, IN, USA, 46222

Website

https://www.allisontransmission.com

Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has about 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.

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