Loblaw (TSX:L) ROCE % : 18.45% (As of Sep. 2024)

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What is Loblaw 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. Loblaw's annualized ROCE % for the quarter that ended in Sep. 2024 was 18.45%.

Loblaw ROCE % Historical Data

The historical data trend for Loblaw'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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Loblaw ROCE % Chart

Loblaw Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.43

8.77

11.49

12.17

13.31

Loblaw Quarterly Data
	Sep19	Dec19	Mar20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															15.32	13.77	12.36	12.32	18.45

Loblaw ROCE % Calculation

Loblaw'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 )
	=	3738	/	( ( (38147 - 10098)	+	(38979 - 10847) )	/ 2 )
	=	3738	/	( (28049	+	28132)	/ 2 )
	=	3738	/	28090.5
	=	13.31 %

Loblaw'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 )
	=	5332	/	( ( (38612 - 9785)	+	(39261 - 10291) )	/ 2 )
	=	5332	/	( ( 28827	+	28970 )	/ 2 )
	=	5332	/	28898.5
	=	18.45 %

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

Loblaw (TSX:L) 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.

Loblaw ROCE % Related Terms

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Loblaw Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Loblaw Companies Ltd (TSX:L) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LBLCF:USA L8G:Germany L.PR.B.PFD:Canada

Address

1 President’s Choice Circle, Brampton, ON, CAN, L6Y 5S5

Website

https://www.loblaw.ca

Loblaw is Canada's largest retailer, operating 2,460 food retail and pharmacy stores across the country. Its main grocery banners include Loblaw, No Frills, and Maxi, and its pharmacy stores are mostly under the Shoppers Drug Mart banner, which it acquired in 2014. In addition to brand-name offerings, Loblaw offers private-label products under the President's Choice and No Name brands. Beyond retail, Loblaw runs the PC Optimum loyalty program and also offers credit cards and insurance brokerage, which are collectively referred to as financial services. George Weston is Loblaw's controlling shareholder with a 53% stake.

Executives

Jeffrey Francis Leger	Senior Officer
Robert Wayne Wiebe	Senior Officer
Kieran Barry Columb	Senior Officer
Mark William Henry Wilson	Senior Officer
Frank Gambioli	Senior Officer
Nicholas Henn	Senior Officer
Gregory Mark Ramier	Senior Officer
David Markwell	Senior Officer
M. Marianne Harris	Director, Director or Senior Officer of 10% Security Holder
Richard Dufresne	Director or Senior Officer of 10% Security Holder, Senior Officer
Willard Galen Garfield Weston	Director, Director or Senior Officer of 10% Security Holder
Jocyanne C. Bourdeau	Senior Officer
Uwe Stueckmann	Senior Officer
William Downe	Director
Darren Myers	Senior Officer