Argan (STU:1AW) ROCE % : 37.59% (As of Oct. 2024)

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What is Argan 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. Argan's annualized ROCE % for the quarter that ended in Oct. 2024 was 37.59%.

Argan ROCE % Historical Data

The historical data trend for Argan'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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Argan ROCE % Chart

Argan Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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-14.00

6.55

16.54

13.85

12.44

Argan 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															11.10	15.77	8.86	24.44	37.59

Argan ROCE % Calculation

Argan'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 )
	=	33.468	/	( ( (454.244 - 187.923)	+	(549.174 - 277.475) )	/ 2 )
	=	33.468	/	( (266.321	+	271.699)	/ 2 )
	=	33.468	/	269.01
	=	12.44 %

Argan'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 )
	=	111.38	/	( ( (669.901 - 382.747)	+	(705.817 - 400.399) )	/ 2 )
	=	111.38	/	( ( 287.154	+	305.418 )	/ 2 )
	=	111.38	/	296.286
	=	37.59 %

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

Argan (STU:1AW) 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.

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Argan Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Argan Inc (STU:1AW) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AGX:USA 0HHO:UK 1AW:Germany

Address

One Church Street, Suite 201, Rockville, MD, USA, 20850

Website

https://www.arganinc.com

Argan Inc is a United States-base construction firm that conducts operations through its wholly-owned subsidiaries, GPS, APC, TRC and SMC. Through GPS and APC it provides a full range of engineering, procurement, construction, commissioning, maintenance, project development and technical consulting services to the power generation market, including the renewable energy sector, for a wide range of customers, including independent power project owners, public utilities, power plant heavy equipment suppliers and other commercial firms with power requirements in the U.S., Ireland and the U.K. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derive majority revenue.

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