Allocate Software (LSE:ALLA) ROCE %: 47.67% (As of May. 2014)


What is Allocate Software ROCE %?

Allocate Software LSE:ALLA ROCE % is 47.67% as of May. 2014. The stock has 1 warning sign investors should review.

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. Allocate Software's annualized ROCE % for the quarter that ended in May. 2014 was 47.67%.

Allocate Software  (LSE:ALLA) 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.

Allocate Software ROCE % Related Terms

Allocate Software ROCE % Historical Data

* Premium members only.

The historical data trend for Allocate Software'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.

Allocate Software ROCE % Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.73 3.39 -18.85 -10.77 14.39

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.29 -23.28 2.34 -20.05 47.67

Allocate Software ROCE % Calculation

Allocate Software's annualized ROCE % for the fiscal year that ended in May. 2014 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: May. 2014 )  (A: May. 2013 )(A: May. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: May. 2014 )  (A: May. 2013 )(A: May. 2014 )
=2.915/( ( (41.687 - 23.222) + (42.508 - 20.471) )/ 2 )
=2.915/( (18.465+22.037)/ 2 )
=2.915/20.251
=14.39 %

Allocate Software's ROCE % of for the quarter that ended in May. 2014 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2014 )  (Q: Nov. 2013 )(Q: May. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2014 )  (Q: Nov. 2013 )(Q: May. 2014 )
=9.444/( ( (33.633 - 16.045) + (42.508 - 20.471) )/ 2 )
=9.444/( ( 17.588 + 22.037 )/ 2 )
=9.444/19.8125
=47.67 %

(1) Note: The EBIT data used here is two times the semi-annual (May. 2014) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 47.67% mean?
Allocate Software (LSE:ALLA) has a ROCE % of 47.67% as of May. 2014.
Is Allocate Software's ROCE % too high?
Allocate Software's current ROCE % is 47.67%. The Software industry median ROCE % is 5.18. Allocate Software's value of 47.67% is 821.2% above this industry median.
How does Allocate Software's ROCE % compare to SREV and ASUR?
Allocate Software's ROCE % of 47.67% can be compared against companies in the Software industry. The industry median ROCE % is 5.18. Allocate Software's value of 47.67% is 821.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.18, based on 2,710 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Allocate Software's current ROCE % of 47.67% is 821.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current ROCE % is 47.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current ROCE % of 47.67%. The current ROCE % is 47.67% and 821.2% above the Software industry median of 5.18. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Allocate Software (LSE:ALLA), the current ROCE % is 47.67% as of May. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.