Alamo Group (MEX:ALG) ROCE % : 12.34% (As of Dec. 2024)

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What is Alamo Group 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. Alamo Group's annualized ROCE % for the quarter that ended in Dec. 2024 was 12.34%.

Alamo Group ROCE % Historical Data

The historical data trend for Alamo 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.

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Alamo Group ROCE % Chart

Alamo Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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9.75

12.32

13.61

16.23

15.24

Alamo Group Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															15.20	15.15	14.11	13.11	12.34

Alamo Group ROCE % Calculation

Alamo Group's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	3549.14	/	( ( (23923.267 - 3631.233)	+	(30246.584 - 3969.027) )	/ 2 )
	=	3549.14	/	( (20292.034	+	26277.557)	/ 2 )
	=	3549.14	/	23284.7955
	=	15.24 %

Alamo Group's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	3164.312	/	( ( (29168.049 - 4174.659)	+	(30246.584 - 3969.027) )	/ 2 )
	=	3164.312	/	( ( 24993.39	+	26277.557 )	/ 2 )
	=	3164.312	/	25635.4735
	=	12.34 %

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

Alamo Group (MEX:ALG) 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.

Alamo Group ROCE % Related Terms

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Alamo Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Alamo Group Inc (MEX:ALG) » Definitions » ROCE %

Comparable Companies

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ALG:USA

Address

1627 East Walnut, Seguin, TX, USA, 78155

Website

https://www.alamo-group.com

Alamo Group Inc is engaged in the design, manufacture, and servicing of high-quality vegetation management and infrastructure maintenance equipment for governmental, industrial and agricultural use. Its products include tractor-mounted and self-propelled mowers, zero-turn mowers, agricultural implements, tree and branch chippers, forestry/wood recycling equipment, street and parking lot sweepers, leaf and debris collection equipment, truck mounted highway attenuator trucks, vacuum trucks, hydro-excavation equipment, telescopic boom excavators, and snow removal equipment. The company's reportable segments are Vegetation Management and Industrial Equipment. It generates a majority of revenue from Vegetation Management. Geographically, it generates the majority of revenue from United States.