Automotive Finco (Automotive Finco) ROCE % : 7.58% (As of Mar. 2024)

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What is Automotive Finco 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. Automotive Finco's annualized ROCE % for the quarter that ended in Mar. 2024 was 7.58%.

Automotive Finco ROCE % Historical Data

The historical data trend for Automotive Finco'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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Automotive Finco ROCE % Chart

Automotive Finco Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.94

-2.23

-3.50

-2.32

7.80

Automotive Finco Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															6.78	7.11	8.38	9.00	7.58

Automotive Finco ROCE % Calculation

Automotive Finco's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1.357	/	( ( (17.027 - 0.292)	+	(18.063 - 0.013) )	/ 2 )
	=	1.357	/	( (16.735	+	18.05)	/ 2 )
	=	1.357	/	17.3925
	=	7.80 %

Automotive Finco's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	1.376	/	( ( (18.063 - 0.013)	+	(18.279 - 0.045) )	/ 2 )
	=	1.376	/	( ( 18.05	+	18.234 )	/ 2 )
	=	1.376	/	18.142
	=	7.58 %

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

Automotive Finco (OTCPK:RMIAF) 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.

Automotive Finco ROCE % Related Terms

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Automotive Finco (Automotive Finco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Automotive Finco Corp (OTCPK:RMIAF) » Definitions » ROCE %

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AFCC.H:Canada

Address

Yonge King, PO Box 17026, Toronto, ON, CAN, M5E 1Y2

Website

https://www.autofincocorp.com

Automotive Finco Corp p is a finance company focused exclusively on the auto retail sector. The company also pursues other direct investments and financing opportunities across the auto retail sector. Through its investment in Automotive Finance LP, it is engaged in the business of lending and administering investment funds. The Company has only one operating segment: Investment issuer focused on providing debt financing and making other investments in the auto retail sector.