SOFT (SofTech) ROCE %: 1,375.98% (As of Nov. 2016)

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What is SofTech ROCE %?

SofTech SOFT +100.00% ROCE % is 1,375.98% as of Nov. 2016.

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. SofTech's annualized ROCE % for the quarter that ended in Nov. 2016 was 1,375.98%.

SofTech  (OTCPK:SOFT) 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.

SofTech ROCE % Related Terms

SofTech ROCE % Historical Data

* Premium members only.

The historical data trend for SofTech'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.

SofTech ROCE % Chart

SofTech Annual Data
Trend May06 May07 May08 May09 May11 May12 May13 May14 May15 May16
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.73 18.52 -16.60 -124.14 -137.72

SofTech Quarterly Data
Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.98 -228.80 -230.67 -1,027.64 1,375.98

SofTech ROCE % Calculation

SofTech's annualized ROCE % for the fiscal year that ended in May. 2016 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: May. 2016 )  (A: May. 2015 )(A: May. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: May. 2016 )  (A: May. 2015 )(A: May. 2016 )
=-0.575/( ( (3.293 - 2.617) + (3.115 - 2.956) )/ 2 )
=-0.575/( (0.676+0.159)/ 2 )
=-0.575/0.4175
=-137.72 %

SofTech's ROCE % of for the quarter that ended in Nov. 2016 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Nov. 2016 )  (Q: Aug. 2016 )(Q: Nov. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Nov. 2016 )  (Q: Aug. 2016 )(Q: Nov. 2016 )
=10.368/( ( (3.26 - 3.296) + (2.58 - 1.037) )/ 2 )
=10.368/( ( -0.036 + 1.543 )/ 2 )
=10.368/0.7535
=1,375.98 %

(1) Note: The EBIT data used here is four times the quarterly (Nov. 2016) 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 1,375.98% mean?
SofTech (SOFT) has a ROCE % of 1,375.98% as of Nov. 2016.
Is SofTech's ROCE % too high?
SofTech's current ROCE % is 1,375.98%. The Software industry median ROCE % is 5.35. SofTech's value of 1,375.98% is 25619.3% above this industry median.
How does SofTech's ROCE % compare to RETC and AGGG?
SofTech's ROCE % of 1,375.98% can be compared against companies in the Software industry. The industry median ROCE % is 5.35. SofTech's value of 1,375.98% is 25619.3% above this benchmark. 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 Software company?
The median ROCE % among Software companies is 5.35, based on 2,726 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. SofTech's current ROCE % of 1,375.98% is 25619.3% above the industry median. 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 Software industry, the median ROCE % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SofTech's current ROCE % is 1,375.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SofTech stock overvalued right now?
SofTech (SOFT) has a current ROCE % of 1,375.98%. The current ROCE % is 1,375.98% and 25619.3% above the Software industry median of 5.35. 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 SofTech (SOFT), the current ROCE % is 1,375.98% as of Nov. 2016. 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.

SofTech Business Description

Address 650 Suffolk Street, Suite 415, Lowell, MA, USA, 01854
SofTech Inc is engaged in the development, marketing, distribution and support of computer software solutions that enable companies to manage the lifecycle of their products from conception through design and manufacture, to service and disposal. The company's service offerings include consulting, training and discrete engineering services. These solutions include software technology offerings for computer-aided design, and product data management and collaboration technologies. In addition, the company offers a technology platform that allows data exchange between various third-party technology offerings known as the company's connector offering.