Avanta Serviced Office Group (LSE:ASOA) ROCE %: 15.79% (As of Jun. 2014)


What is Avanta Serviced Office Group ROCE %?

Avanta Serviced Office Group LSE:ASOA ROCE % is 15.79% as of Jun. 2014. The stock has 3 warning signs 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. Avanta Serviced Office Group's annualized ROCE % for the quarter that ended in Jun. 2014 was 15.79%.

Avanta Serviced Office Group  (LSE:ASOA) 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.

Avanta Serviced Office Group ROCE % Related Terms

Avanta Serviced Office Group ROCE % Historical Data

* Premium members only.

The historical data trend for Avanta Serviced Office Group'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.

Avanta Serviced Office Group ROCE % Chart

Avanta Serviced Office Group Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.62 9.23 -48.48 56.19 -9.71

Avanta Serviced Office Group Semi-Annual Data
Dec04 Jun05 Dec05 Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
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 0.00 104.02 -9.38 -13.13 15.79

Avanta Serviced Office Group ROCE % Calculation

Avanta Serviced Office Group's annualized ROCE % for the fiscal year that ended in Dec. 2013 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=-2.531/( ( (25.444 - 6.482) + (58.104 - 24.91) )/ 2 )
=-2.531/( (18.962+33.194)/ 2 )
=-2.531/26.078
=-9.71 %

Avanta Serviced Office Group's ROCE % of for the quarter that ended in Jun. 2014 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2014 )  (Q: Dec. 2013 )(Q: Jun. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2014 )  (Q: Dec. 2013 )(Q: Jun. 2014 )
=5.006/( ( (58.104 - 24.91) + (59.967 - 29.757) )/ 2 )
=5.006/( ( 33.194 + 30.21 )/ 2 )
=5.006/31.702
=15.79 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 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 15.79% mean?
Avanta Serviced Office Group (LSE:ASOA) has a ROCE % of 15.79% as of Jun. 2014.
Is Avanta Serviced Office Group's ROCE % too high?
Avanta Serviced Office Group's current ROCE % is 15.79%. The Asset Management industry median ROCE % is 4.43. Avanta Serviced Office Group's value of 15.79% is 256.8% above this industry median.
How does Avanta Serviced Office Group's ROCE % compare to AINC and HCAP?
Avanta Serviced Office Group's ROCE % of 15.79% can be compared against companies in the Asset Management industry. The industry median ROCE % is 4.43. Avanta Serviced Office Group's value of 15.79% is 256.8% 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 an Asset Management company?
The median ROCE % among Asset Management companies is 4.43, based on 708 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. Avanta Serviced Office Group's current ROCE % of 15.79% is 256.8% 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 Asset Management industry, the median ROCE % is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanta Serviced Office Group's current ROCE % is 15.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanta Serviced Office Group stock overvalued right now?
Avanta Serviced Office Group (LSE:ASOA) has a current ROCE % of 15.79%. The current ROCE % is 15.79% and 256.8% above the Asset Management industry median of 4.43. 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 Avanta Serviced Office Group (LSE:ASOA), the current ROCE % is 15.79% as of Jun. 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.

Avanta Serviced Office Group Business Description

Serviced Office Group PLC is engaged in the ownership and operation of serviced office accommodation. Its reportable segments are Serviced office business and Managed serviced offices. Serviced office business undertaken in the group's freehold and leasehold properties; and Managed serviced office business undertaken under management contracts on behalf of third parties. The Group operates solely from the UK.