Ferguson (LSE:FERG) ROCE % : 17.15% (As of Jan. 2024)

View and export this data going back to 1961. Start your Free Trial

What is Ferguson 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. Ferguson's annualized ROCE % for the quarter that ended in Jan. 2024 was 17.15%.

Ferguson ROCE % Historical Data

The historical data trend for Ferguson'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.

* Premium members only.

Ferguson ROCE % Chart

Ferguson Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

ROCE %

Get a 7-Day Free Trial

21.85

17.71

21.26

31.94

25.02

Ferguson Quarterly Data
	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															20.11	19.11	29.41	28.22	17.15

Ferguson ROCE % Calculation

Ferguson's annualized ROCE % for the fiscal year that ended in Jul. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jul. 2023 )		(A: Jul. 2022 )		(A: Jul. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jul. 2023 )		(A: Jul. 2022 )		(A: Jul. 2023 )
	=	2054.848	/	( ( (13061.274 - 4836.366)	+	(12411.344 - 4212.904) )	/ 2 )
	=	2054.848	/	( (8224.908	+	8198.44)	/ 2 )
	=	2054.848	/	8211.674
	=	25.02 %

Ferguson's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	1501.596	/	( ( (13479.178 - 4545.877)	+	(12345.669 - 3768.156) )	/ 2 )
	=	1501.596	/	( ( 8933.301	+	8577.513 )	/ 2 )
	=	1501.596	/	8755.407
	=	17.15 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Ferguson (LSE:FERG) 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.

Ferguson ROCE % Related Terms

Thank you for viewing the detailed overview of Ferguson's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Ferguson (LSE:FERG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Ferguson PLC (LSE:FERG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

FERG:USA FERGl:UK 24W5:Germany

Address

1020 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, GBR, RG41 5TS

Website

https://www.fergusonplc.com

Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.