Hammond Manufacturing Co (TSX:HMM.A) ROCE % : 20.25% (As of Sep. 2024)

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What is Hammond Manufacturing Co 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. Hammond Manufacturing Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 20.25%.

Hammond Manufacturing Co ROCE % Historical Data

The historical data trend for Hammond Manufacturing Co'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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Hammond Manufacturing Co ROCE % Chart

Hammond Manufacturing Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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12.53

15.91

13.52

18.36

24.69

Hammond Manufacturing Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															21.31	24.89	21.34	22.15	20.25

Hammond Manufacturing Co ROCE % Calculation

Hammond Manufacturing Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	28.051	/	( ( (168.005 - 63.417)	+	(189.538 - 66.912) )	/ 2 )
	=	28.051	/	( (104.588	+	122.626)	/ 2 )
	=	28.051	/	113.607
	=	24.69 %

Hammond Manufacturing Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	27.568	/	( ( (202.214 - 67.522)	+	(208.192 - 70.577) )	/ 2 )
	=	27.568	/	( ( 134.692	+	137.615 )	/ 2 )
	=	27.568	/	136.1535
	=	20.25 %

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

Hammond Manufacturing Co (TSX:HMM.A) 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.

Hammond Manufacturing Co ROCE % Related Terms

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Hammond Manufacturing Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Hammond Manufacturing Co Ltd (TSX:HMM.A) » Definitions » ROCE %

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Traded in Other Exchanges

HMFAF:USA

Address

394 Edinburgh Road North, Guelph, ON, CAN, N1H 1E5

Website

https://www.hammfg.com

Hammond Manufacturing Co Ltd is involved in the design, manufacture and sale of electrical and electronic components. Its geographical segments are Canada, the United States, and other countries, of which key revenue is derived from the United States. The Company are in one operating segment, electrical and electronic components. The Company generates revenue through the manufacturing and sale of industrial enclosures, electronic enclosures, racks and cabinets, transformers and other products.

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