Roots (RROTF) ROCE % : 7.57% (As of Oct. 2024)

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What is Roots 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. Roots's annualized ROCE % for the quarter that ended in Oct. 2024 was 7.57%.

Roots ROCE % Historical Data

The historical data trend for Roots'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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Roots ROCE % Chart

Roots Annual Data

Trend

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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-16.50

8.43

12.17

5.45

3.88

Roots Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															4.31	28.99	-12.78	-6.65	7.57

Roots ROCE % Calculation

Roots's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	9.097	/	( ( (291.977 - 55.902)	+	(275.543 - 42.55) )	/ 2 )
	=	9.097	/	( (236.075	+	232.993)	/ 2 )
	=	9.097	/	234.534
	=	3.88 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	16.424	/	( ( (256.06 - 43.037)	+	(269.412 - 48.528) )	/ 2 )
	=	16.424	/	( ( 213.023	+	220.884 )	/ 2 )
	=	16.424	/	216.9535
	=	7.57 %

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

Roots (OTCPK:RROTF) 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.

Roots ROCE % Related Terms

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Roots Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Roots Corp (OTCPK:RROTF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

4RO:Germany ROOT:Canada

Address

1400 Castlefield Avenue, Toronto, ON, CAN, M6B 4C4

Website

https://www.roots.com

Roots Corp provides a portfolio of apparel, leather goods, accessories, and footwear for men, women, and children under the Roots brand. Its merchandise includes genuine leather, such as jackets, bags, and luggage; kids & baby clothing; and leather, linens, towels, and accessories. The company operates through two segments: Direct-To-Consumer, which accounts for the majority of revenue, and Partners & Other. The DTC segment sells products through the company's corporate retail stores and e-commerce. The Partners & Other segment engage in the wholesale of Roots-branded products to the company's international operating partner, and it earns royalties on the retail sales of Roots-branded products. The company has operating stores in Canada, the United States, Taiwan, China, and Hong Kong.