Fred's (STU:FR1A) ROCE % : -52.79% (As of Apr. 2019)

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What is Fred's 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. Fred's's annualized ROCE % for the quarter that ended in Apr. 2019 was -52.79%.

Fred's ROCE % Historical Data

The historical data trend for Fred's'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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Fred's ROCE % Chart

Fred's Annual Data

Trend

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

ROCE %

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-11.34

-2.83

-16.07

-29.39

-47.56

Fred's Quarterly Data
	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Apr20
ROCE %	Get a 7-Day Free Trial															-26.17	-37.49	-104.67	-52.79	-

Fred's ROCE % Calculation

Fred's's annualized ROCE % for the fiscal year that ended in Jan. 2019 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2019 )		(A: Jan. 2018 )		(A: Jan. 2019 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2019 )		(A: Jan. 2018 )		(A: Jan. 2019 )
	=	-113.486	/	( ( (490.003 - 183.538)	+	(358.306 - 187.552) )	/ 2 )
	=	-113.486	/	( (306.465	+	170.754)	/ 2 )
	=	-113.486	/	238.6095
	=	-47.56 %

Fred's's ROCE % of for the quarter that ended in Apr. 2019 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Apr. 2019 )		(Q: Jan. 2019 )		(Q: Apr. 2019 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Apr. 2019 )		(Q: Jan. 2019 )		(Q: Apr. 2019 )
	=	-95.368	/	( ( (358.306 - 187.552)	+	(422.549 - 231.985) )	/ 2 )
	=	-95.368	/	( ( 170.754	+	190.564 )	/ 2 )
	=	-95.368	/	180.659
	=	-52.79 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2019) EBIT data.

Fred's (STU:FR1A) 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.

Fred's ROCE % Related Terms

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Fred's Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Fred's Inc (STU:FR1A) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4300 New Getwell Road, Memphis, TN, USA, 38118

Website

http://www.fredsinc.com

Fred's Inc is a U.S.-based company that is principally engaged in operating retail stores. Most of the company's stores are self-owned stores, with a few franchised stores. The company's sales mix consists of pharmaceuticals, consumables, household goods and softlines, and franchise, with pharmaceuticals contributing a material portion of total revenue. The company owns 100% of the equity stake in Reeves-Sain Drug Store. The company generates revenue from merchandise sales and franchise fee from franchisees. It also sells gift cards. The company conducts operation primarily in the southeast of the United States.

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