Advanced Drainage Systems (FRA:6DA) ROCE % : 20.53% (As of Mar. 2024)

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What is Advanced Drainage Systems 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. Advanced Drainage Systems's annualized ROCE % for the quarter that ended in Mar. 2024 was 20.53%.

Advanced Drainage Systems ROCE % Historical Data

The historical data trend for Advanced Drainage Systems'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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Advanced Drainage Systems ROCE % Chart

Advanced Drainage Systems Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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-6.57

15.84

19.87

30.83

28.04

Advanced Drainage Systems 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															19.74	38.44	31.03	22.90	20.53

Advanced Drainage Systems ROCE % Calculation

Advanced Drainage Systems's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	695.166	/	( ( (2709.651 - 353.801)	+	(3007.4 - 404.452) )	/ 2 )
	=	695.166	/	( (2355.85	+	2602.948)	/ 2 )
	=	695.166	/	2479.399
	=	28.04 %

Advanced Drainage Systems'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 )
	=	526.364	/	( ( (2899.516 - 375.168)	+	(3007.4 - 404.452) )	/ 2 )
	=	526.364	/	( ( 2524.348	+	2602.948 )	/ 2 )
	=	526.364	/	2563.648
	=	20.53 %

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

Advanced Drainage Systems (FRA:6DA) 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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Advanced Drainage Systems (FRA:6DA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Advanced Drainage Systems Inc (FRA:6DA) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WMS:USA 6DA:Germany

Address

4640 Trueman Boulevard, Hilliard, OH, USA, 43026

Website

https://www.adspipe.com

Advanced Drainage Systems Inc is engaged in designing, manufacturing, and marketing thermoplastic corrugated pipe and related water management products in North and South America, and Europe. The company's operating segment includes Pipe; Infiltrator; International and Allied Products and Other. It generates maximum revenue from the Pipe segment. The company serves Agriculture; Aviation and Military; Mining; Residential; Transportation; Healthcare and Education and others.

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