Family Dollar Stores (FRA:FAY) ROCE % : 20.08% (As of May. 2015)

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What is Family Dollar Stores 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. Family Dollar Stores's annualized ROCE % for the quarter that ended in May. 2015 was 20.08%.

Family Dollar Stores ROCE % Historical Data

The historical data trend for Family Dollar Stores'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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Family Dollar Stores ROCE % Chart

Family Dollar Stores Annual Data

Trend

Aug05

Aug06

Aug07

Aug08

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

ROCE %

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30.81

30.76

34.27

28.07

16.90

Family Dollar Stores Quarterly Data
	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15
ROCE %	Get a 7-Day Free Trial															19.52	7.22	12.31	20.22	20.08

Family Dollar Stores ROCE % Calculation

Family Dollar Stores's annualized ROCE % for the fiscal year that ended in Aug. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2014 )		(A: Aug. 2013 )		(A: Aug. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2014 )		(A: Aug. 2013 )		(A: Aug. 2014 )
	=	340.047	/	( ( (2786.106 - 811.247)	+	(2896.829 - 847.902) )	/ 2 )
	=	340.047	/	( (1974.859	+	2048.927)	/ 2 )
	=	340.047	/	2011.893
	=	16.90 %

Family Dollar Stores's ROCE % of for the quarter that ended in May. 2015 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: May. 2015 )		(Q: Feb. 2015 )		(Q: May. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: May. 2015 )		(Q: Feb. 2015 )		(Q: May. 2015 )
	=	482.576	/	( ( (3528.399 - 1201.252)	+	(3520.14 - 1041.639) )	/ 2 )
	=	482.576	/	( ( 2327.147	+	2478.501 )	/ 2 )
	=	482.576	/	2402.824
	=	20.08 %

(1) Note: The EBIT data used here is four times the quarterly (May. 2015) EBIT data.

Family Dollar Stores (FRA:FAY) 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.

Family Dollar Stores ROCE % Related Terms

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Family Dollar Stores (FRA:FAY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Family Dollar Stores Inc (FRA:FAY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.familydollar.com

Family Dollar Stores Inc was incorporated in November 1959. The Company provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. It classifies the combination of Home Products, Apparel and Accessories, and Seasonal and Electronics as Discretionary. It operates general merchandise retail discount stores in 46 states, serving the basic needs of customers primarily in the low- and middle-income brackets. The stores are supported by 11 distribution centers and one Store Support Center. It competes for sales and store locations in varying degrees with international, national, regional and local retailing establishments, other discount stores, department stores, variety stores, dollar stores, discount clothing stores, drug stores, grocery stores, convenience stores, outlet stores, warehouse stores and other stores. The Company's trademark includes Family Dollar and Family Dollar Stores. Its business is subject to federal, state, local, and international laws, rules, and regulations, such as state and local wage and hour laws, anti-corruption laws, import and export laws, unclaimed property laws, and many others.

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