European Convergence Development Co (LSE:ECDC) ROCE % : -3.49% (As of Jun. 2014)

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What is European Convergence Development Co 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. European Convergence Development Co's annualized ROCE % for the quarter that ended in Jun. 2014 was -3.49%.

European Convergence Development Co ROCE % Historical Data

The historical data trend for European Convergence Development Co'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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European Convergence Development Co ROCE % Chart

European Convergence Development Co Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROCE %

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-19.80

-3.83

-18.97

-2.55

-4.44

European Convergence Development Co Semi-Annual Data
	Dec09	Jun10	Dec10	Jun11	Dec11	Dec12	Jun13	Dec13	Jun14
ROCE %	Get a 7-Day Free Trial				-34.02	-2.36	1.66	-10.53	-3.49

European Convergence Development Co ROCE % Calculation

European Convergence Development Co'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 )
	=	-1.171	/	( ( (27.251 - 0.298)	+	(26.041 - 0.25) )	/ 2 )
	=	-1.171	/	( (26.953	+	25.791)	/ 2 )
	=	-1.171	/	26.372
	=	-4.44 %

European Convergence Development Co'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 )
	=	-0.892	/	( ( (26.041 - 0.25)	+	(25.591 - 0.251) )	/ 2 )
	=	-0.892	/	( ( 25.791	+	25.34 )	/ 2 )
	=	-0.892	/	25.5655
	=	-3.49 %

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

European Convergence Development Co (LSE:ECDC) 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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European Convergence Development Co (LSE:ECDC) Business Description

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Website

http://www.europeanconvergencedevelopment.com

European Convergence Development Company PLC was incorporated in the Isle of Man on 26 July 2006. The Company through its subsidiaries, invests in early stage development projects such as residential, retail, commercial and industrial properties. The Company invests in Romania, Turkey, Croatia, Bulgaria and Slovakia.

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