The North West Co (TSX:NWC) ROCE % : 17.88% (As of Jan. 2024)

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What is The North West 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. The North West Co's annualized ROCE % for the quarter that ended in Jan. 2024 was 17.88%.

The North West Co ROCE % Historical Data

The historical data trend for The North West 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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The North West Co ROCE % Chart

The North West Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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13.20

22.14

24.60

18.01

17.61

The North West Co 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															17.63	12.18	19.27	19.36	17.88

The North West Co ROCE % Calculation

The North West Co's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	196.657	/	( ( (1336.89 - 248.606)	+	(1396.01 - 250.658) )	/ 2 )
	=	196.657	/	( (1088.284	+	1145.352)	/ 2 )
	=	196.657	/	1116.818
	=	17.61 %

The North West Co'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 )
	=	207.308	/	( ( (1430.18 - 256.046)	+	(1396.01 - 250.658) )	/ 2 )
	=	207.308	/	( ( 1174.134	+	1145.352 )	/ 2 )
	=	207.308	/	1159.743
	=	17.88 %

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

The North West Co (TSX:NWC) 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.

The North West Co ROCE % Related Terms

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The North West Co (TSX:NWC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » The North West Co Inc (TSX:NWC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NNWWF:USA 3NW:Germany

Address

77 Main Street, Winnipeg, MB, CAN, R3C 2R1

Website

https://www.northwest.ca

The North West Co Inc is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company provides food, family apparel, housewares, appliances, and outdoor products, with food products accounting for the majority of the company's revenue. The company also offers services, including post offices, income tax return preparation, money transfers, commercial business sales, and others. Its geographical segment includes Canada and International. The company generates maximum revenue from Canada.

The North West Co (TSX:NWC) Headlines

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