SRSCQ (Sears Canada) ROCE %: -82.52% (As of Apr. 2017)


What is Sears Canada ROCE %?

Sears Canada SRSCQ -99.00% ROCE % is -82.52% as of Apr. 2017.

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. Sears Canada's annualized ROCE % for the quarter that ended in Apr. 2017 was -82.52%.

Sears Canada  (OTCPK:SRSCQ) 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.

Sears Canada ROCE % Related Terms

Sears Canada ROCE % Historical Data

* Premium members only.

The historical data trend for Sears Canada'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.

Sears Canada ROCE % Chart

Sears Canada Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.31 29.18 -25.14 -4.44 -37.11

Sears Canada Quarterly Data
Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
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 -24.99 -38.85 -53.57 -26.42 -82.52

Sears Canada ROCE % Calculation

Sears Canada's annualized ROCE % for the fiscal year that ended in Jan. 2017 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=-234.62/( ( (1149.493 - 415.752) + (943.943 - 413.184) )/ 2 )
=-234.62/( (733.741+530.759)/ 2 )
=-234.62/632.25
=-37.11 %

Sears Canada's ROCE % of for the quarter that ended in Apr. 2017 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2017 )  (Q: Jan. 2017 )(Q: Apr. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2017 )  (Q: Jan. 2017 )(Q: Apr. 2017 )
=-421.524/( ( (943.943 - 413.184) + (883.679 - 392.796) )/ 2 )
=-421.524/( ( 530.759 + 490.883 )/ 2 )
=-421.524/510.821
=-82.52 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2017) 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 -82.52% mean?
Sears Canada (SRSCQ) has a ROCE % of -82.52% as of Apr. 2017.
Is Sears Canada's ROCE % too high?
Sears Canada's current ROCE % is -82.52%.
How does Sears Canada's ROCE % compare to competitors?
Sears Canada's ROCE % of -82.52% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. 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 Retail - Cyclical company?
The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 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. 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 Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sears Canada's current ROCE % is -82.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sears Canada stock overvalued right now?
Sears Canada (SRSCQ) has a current ROCE % of -82.52%. The current ROCE % is -82.52%. 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 Sears Canada (SRSCQ), the current ROCE % is -82.52% as of Apr. 2017. 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.

Sears Canada Business Description

Address 290 Yonge Street, Suite 700, Toronto, ON, CAN, M5B 2C3
Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.