Canadian Tire (TSX:CTC) ROCE % : 14.21% (As of Dec. 2024)

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What is Canadian Tire 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. Canadian Tire's annualized ROCE % for the quarter that ended in Dec. 2024 was 14.21%.

Canadian Tire ROCE % Historical Data

The historical data trend for Canadian Tire'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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Canadian Tire ROCE % Chart

Canadian Tire Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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8.78

11.88

11.15

4.42

8.57

Canadian Tire Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															7.35	3.77	8.20	8.38	14.21

Canadian Tire ROCE % Calculation

Canadian Tire's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	1349.8	/	( ( (21978.3 - 6389)	+	(22240.6 - 6335.4) )	/ 2 )
	=	1349.8	/	( (15589.3	+	15905.2)	/ 2 )
	=	1349.8	/	15747.25
	=	8.57 %

Canadian Tire's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	2222.8	/	( ( (22811.6 - 7428.2)	+	(22240.6 - 6335.4) )	/ 2 )
	=	2222.8	/	( ( 15383.4	+	15905.2 )	/ 2 )
	=	2222.8	/	15644.3
	=	14.21 %

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

Canadian Tire (TSX:CTC) 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.

Canadian Tire ROCE % Related Terms

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Canadian Tire Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Canadian Tire Corp Ltd (TSX:CTC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CDNTF:USA CDNAF:USA YAAA:Germany CTC.A:Canada

Address

2180 Yonge Street, P.O. Box 770, Station K, Toronto, ON, CAN, M4P 2V8

Website

https://www.corp.canadiantire.ca

Canadian Tire is a leading general merchandise retailer with over 1,400 affiliated stores across Canada. The company operates about 650 stores, with the remaining operated by franchisees or third-party dealers. The retailer boasts a wide array of owned and affiliated banners that include its iconic namesake brand, Mark's, Sport Chek, Sports Experts, PartSource, Party City, and Helly Hansen. Its wide product assortment includes automotive parts, appliances, home improvement items, sporting goods, and apparel. The firm also offers a loyalty program with 11 million members and owns a financial services arm that manages a credit card portfolio for its more than 2 million active users.

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