Enghouse Systems (TSX:ENGH) ROCE % : 15.57% (As of Jan. 2024)

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What is Enghouse Systems 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. Enghouse Systems's annualized ROCE % for the quarter that ended in Jan. 2024 was 15.57%.

Enghouse Systems ROCE % Historical Data

The historical data trend for Enghouse Systems'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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Enghouse Systems ROCE % Chart

Enghouse Systems Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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20.90

24.96

20.52

18.63

15.60

Enghouse Systems Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															15.20	10.90	15.47	20.78	15.57

Enghouse Systems ROCE % Calculation

Enghouse Systems's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	87.92	/	( ( (704.998 - 163.873)	+	(783.67 - 197.504) )	/ 2 )
	=	87.92	/	( (541.125	+	586.166)	/ 2 )
	=	87.92	/	563.6455
	=	15.60 %

Enghouse Systems's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	91.168	/	( ( (783.67 - 197.504)	+	(800.07 - 215.089) )	/ 2 )
	=	91.168	/	( ( 586.166	+	584.981 )	/ 2 )
	=	91.168	/	585.5735
	=	15.57 %

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

Enghouse Systems (TSX:ENGH) 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.

Enghouse Systems ROCE % Related Terms

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Enghouse Systems (TSX:ENGH) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Enghouse Systems Ltd (TSX:ENGH) » Definitions » ROCE %

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EGHSF:USA

Address

80 Tiverton Court, Suite 800, Markham, ON, CAN, L3R 0G4

Website

https://www.enghouse.com

Enghouse Systems Ltd is a Canada-based provider of software and services to a variety of end markets. The firm's operations are organized in two segments namely, the Interactive Management Group and the Asset Management Group. It earns majority of its revenue from Interactive Management Group. The firm has operations in Canada, the United States, the United Kingdom, Europe, excluding Scandinavia, Germany, Asia-Pacific and other.