Agrium (TSX:AGU) ROCE % : -0.68% (As of Sep. 2017)

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What is Agrium 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. Agrium's annualized ROCE % for the quarter that ended in Sep. 2017 was -0.68%.

Agrium ROCE % Historical Data

The historical data trend for Agrium'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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Agrium ROCE % Chart

Agrium Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROCE %

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21.72

15.22

10.72

15.39

9.37

Agrium Quarterly Data
	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17
ROCE %	Get a 7-Day Free Trial															0.51	5.73	1.99	29.00	-0.68

Agrium ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2016 )		(A: Dec. 2015 )		(A: Dec. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2016 )		(A: Dec. 2015 )		(A: Dec. 2016 )
	=	1455.285	/	( ( (22457.78 - 6759.138)	+	(22626.946 - 7272.423) )	/ 2 )
	=	1455.285	/	( (15698.642	+	15354.523)	/ 2 )
	=	1455.285	/	15526.5825
	=	9.37 %

Agrium's ROCE % of for the quarter that ended in Sep. 2017 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2017 )		(Q: Jun. 2017 )		(Q: Sep. 2017 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2017 )		(Q: Jun. 2017 )		(Q: Sep. 2017 )
	=	-103.144	/	( ( (23351.338 - 7237.798)	+	(20713.445 - 6407.182) )	/ 2 )
	=	-103.144	/	( ( 16113.54	+	14306.263 )	/ 2 )
	=	-103.144	/	15209.9015
	=	-0.68 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2017) EBIT data.

Agrium (TSX:AGU) 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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Agrium (TSX:AGU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Agrium Inc (TSX:AGU) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.agrium.com

With more than 1,400 retail centers, Canada-based Agrium is the largest agricultural retailer in the United States, selling fertilizers, crop chemicals, and seed directly to farm customers. The company's wholesale business produces and markets the three main crop nutrients--nitrogen, potash, and phosphate--with natural resources located mainly in Canada and the United States. The bulk of Agrium's sales are generated in the U.S., Canada, and Australia.