RONA (TSX:RON.PR.B.PFD) ROCE % : -3.01% (As of Mar. 2016)

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What is RONA 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. RONA's annualized ROCE % for the quarter that ended in Mar. 2016 was -3.01%.

RONA ROCE % Historical Data

The historical data trend for RONA'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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RONA ROCE % Chart

RONA Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROCE %

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-1.11

2.06

-1.75

6.24

5.87

RONA Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
ROCE %	Get a 7-Day Free Trial															-1.90	15.65	4.61	4.35	-3.01

RONA ROCE % Calculation

RONA's annualized ROCE % for the fiscal year that ended in Dec. 2015 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2015 )		(A: Dec. 2014 )		(A: Dec. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2015 )		(A: Dec. 2014 )		(A: Dec. 2015 )
	=	109.761	/	( ( (2336.109 - 462.458)	+	(2483.742 - 615.377) )	/ 2 )
	=	109.761	/	( (1873.651	+	1868.365)	/ 2 )
	=	109.761	/	1871.008
	=	5.87 %

RONA's ROCE % of for the quarter that ended in Mar. 2016 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2016 )		(Q: Dec. 2015 )		(Q: Mar. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2016 )		(Q: Dec. 2015 )		(Q: Mar. 2016 )
	=	-57.556	/	( ( (2483.742 - 615.377)	+	(2643.673 - 685.258) )	/ 2 )
	=	-57.556	/	( ( 1868.365	+	1958.415 )	/ 2 )
	=	-57.556	/	1913.39
	=	-3.01 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2016) EBIT data.

RONA (TSX:RON.PR.B.PFD) 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.

RONA ROCE % Related Terms

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RONA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RONA Inc (TSX:RON.PR.B.PFD) » Definitions » ROCE %

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Address

Website

http://www.rona.ca

Rona Inc founded on October 6, 1939, is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. The Company has three segments of activity in hardware, renovation and construction marketplace: distribution, retail and commercial and professional. The Company provides automotive products, building materials and accessories, decoration products, gutter and accessories, hand tools, hardware products, horticulture products, kitchen and bathroom products, lighting and electrical products, paint products, plumbing products, power tools, pre-seasonal products, storage and house ware products, tiling products, winter season products, and gift cards, as well as heating, ventilation, and air conditioning (HVAC) products. The Company also provides construction plans. The Company's model comprises of various store formats that address specific markets or consumer sectors and three ownership formulas.

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