Hoganas AB (LTS:0GMD) ROCE % : 22.09% (As of Jun. 2013)

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What is Hoganas AB 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. Hoganas AB's annualized ROCE % for the quarter that ended in Jun. 2013 was 22.09%.

Hoganas AB ROCE % Historical Data

The historical data trend for Hoganas AB'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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Hoganas AB ROCE % Chart

Hoganas AB Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROCE %

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11.97

6.82

25.90

23.08

19.02

Hoganas AB Quarterly Data
	Dec07	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
ROCE %	Get a 7-Day Free Trial															23.95	17.22	11.12	21.12	22.09

Hoganas AB ROCE % Calculation

Hoganas AB's annualized ROCE % for the fiscal year that ended in Dec. 2012 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	903	/	( ( (5936 - 1170)	+	(5735 - 1006) )	/ 2 )
	=	903	/	( (4766	+	4729)	/ 2 )
	=	903	/	4747.5
	=	19.02 %

Hoganas AB's ROCE % of for the quarter that ended in Jun. 2013 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2013 )		(Q: Mar. 2013 )		(Q: Jun. 2013 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2013 )		(Q: Mar. 2013 )		(Q: Jun. 2013 )
	=	1048	/	( ( (5838 - 1098)	+	(5936 - 1186) )	/ 2 )
	=	1048	/	( ( 4740	+	4750 )	/ 2 )
	=	1048	/	4745
	=	22.09 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2013) EBIT data.

Hoganas AB (LTS:0GMD) 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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Hoganas AB (LTS:0GMD) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hoganas AB (LTS:0GMD) » Definitions » ROCE %

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Website

http://www.hoganas.com

HÃ¶ganÃ¤s AB develops, manufactures and markets metal powders and metal powder technology. Metal powders are used in iron fortification, printing, surface coating, welding, friction materials, chemical and metallurgical processes & soft magnetic composites.

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