Optare (LSE:OPE) ROCE %: -47.29% (As of Sep. 2014)


What is Optare ROCE %?

Optare LSE:OPE ROCE % is -47.29% as of Sep. 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. Optare's annualized ROCE % for the quarter that ended in Sep. 2014 was -47.29%.

Optare  (LSE:OPE) 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.

Optare ROCE % Related Terms

Optare ROCE % Historical Data

* Premium members only.

The historical data trend for Optare'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.

Optare ROCE % Chart

Optare Annual Data
Trend Dec08 Dec09 Dec10 Mar12 Mar13 Mar14
ROCE %
Get a 7-Day Free Trial -80.03 -60.31 -201.32 -1,740.58 -85.82

Optare Semi-Annual Data
Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -988.01 0.00 -75.78 -32.74 -47.29

Optare ROCE % Calculation

Optare's annualized ROCE % for the fiscal year that ended in Mar. 2014 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2014 )  (A: Mar. 2013 )(A: Mar. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2014 )  (A: Mar. 2013 )(A: Mar. 2014 )
=-3.041/( ( (38.259 - 41.414) + (40.619 - 30.377) )/ 2 )
=-3.041/( (-3.155+10.242)/ 2 )
=-3.041/3.5435
=-85.82 %

Optare's ROCE % of for the quarter that ended in Sep. 2014 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2014 )  (Q: Mar. 2014 )(Q: Sep. 2014 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2014 )  (Q: Mar. 2014 )(Q: Sep. 2014 )
=-4.154/( ( (40.619 - 30.377) + (36.172 - 28.847) )/ 2 )
=-4.154/( ( 10.242 + 7.325 )/ 2 )
=-4.154/8.7835
=-47.29 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 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 -47.29% mean?
Optare (LSE:OPE) has a ROCE % of -47.29% as of Sep. 2014.
Is Optare's ROCE % too high?
Optare's current ROCE % is -47.29%.
How does Optare's ROCE % compare to competitors?
Optare's ROCE % of -47.29% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.94. 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 Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.94, based on 1,319 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. 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 Vehicles & Parts industry, the median ROCE % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Optare's current ROCE % is -47.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optare stock overvalued right now?
Optare (LSE:OPE) has a current ROCE % of -47.29%. The current ROCE % is -47.29%. 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 Optare (LSE:OPE), the current ROCE % is -47.29% as of Sep. 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.

Optare Business Description

Optare PLC is a company incorporated and domiciled in United Kingdom on January 23, 2008. The Company is engaged in designing, manufacturing and selling deck and double deck buses, and also offers after sales service. The company operates in the United Kingdom. The Company's products include; Solo a mini-bus, Metro city and Versa a Midi-buses, Tempo a Full size single deck bus, and Metrodecker a Double-decker bus. It also provides refurbishment services; and technical training, support services, and parts.