Alfa Financial Software Holdings (LSE:ALFA) ROCE % : 66.91% (As of Dec. 2024)

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What is Alfa Financial Software 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. Alfa Financial Software Holdings's annualized ROCE % for the quarter that ended in Dec. 2024 was 66.91%.

Alfa Financial Software Holdings ROCE % Historical Data

The historical data trend for Alfa Financial Software 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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Alfa Financial Software Holdings ROCE % Chart

Alfa Financial Software Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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27.01

35.81

53.20

59.96

65.23

Alfa Financial Software Holdings Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROCE %	Get a 7-Day Free Trial															56.51	66.34	52.54	64.13	66.91

Alfa Financial Software Holdings ROCE % Calculation

Alfa Financial Software Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	34.8	/	( ( (75.1 - 25.6)	+	(84.7 - 27.5) )	/ 2 )
	=	34.8	/	( (49.5	+	57.2)	/ 2 )
	=	34.8	/	53.35
	=	65.23 %

Alfa Financial Software Holdings's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Jun. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Jun. 2024 )		(Q: Dec. 2024 )
	=	36.8	/	( ( (81.6 - 28.8)	+	(84.7 - 27.5) )	/ 2 )
	=	36.8	/	( ( 52.8	+	57.2 )	/ 2 )
	=	36.8	/	55
	=	66.91 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2024) EBIT data.

Alfa Financial Software Holdings (LSE:ALFA) 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.

Alfa Financial Software Holdings ROCE % Related Terms

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Alfa Financial Software Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Alfa Financial Software Holdings PLC (LSE:ALFA) » Definitions » ROCE %

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Traded in Other Exchanges

ALFAl:UK A9F:Germany

Address

1 Fore Street Avenue, Moor Place, London, GBR, EC2Y 9DT

Website

https://www.alfasystems.com

Alfa Financial Software Holdings PLC provides software and services to the auto and equipment finance industries. Alfa Systems its technology platform, supports both retail and corporate business for auto, equipment, wholesale, and dealer finance on a multijurisdictional basis, including leases/loans, originations, and servicing. An end-to-end solution with integrated workflow and automated processing using business rules, it provides compelling solutions to asset finance companies. The company generates a majority of its revenue from the United Kingdom and the rest from the United States, and other regions.

Alfa Financial Software Holdings Headlines

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