Chemtura (XPAR:CHMT) ROCE % : 9.64% (As of Dec. 2016)

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What is Chemtura 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. Chemtura's annualized ROCE % for the quarter that ended in Dec. 2016 was 9.64%.

Chemtura ROCE % Historical Data

The historical data trend for Chemtura'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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Chemtura ROCE % Chart

Chemtura Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROCE %

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7.75

2.31

29.29

9.11

2.43

Chemtura Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROCE %	Get a 7-Day Free Trial															9.33	-20.82	11.49	10.52	9.64

Chemtura ROCE % Calculation

Chemtura's annualized ROCE % for the fiscal year that ended in Dec. 2016 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2016 )		(A: Dec. 2015 )		(A: Dec. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2016 )		(A: Dec. 2015 )		(A: Dec. 2016 )
	=	43.608	/	( ( (2166.48 - 331.398)	+	(2055.264 - 293.88) )	/ 2 )
	=	43.608	/	( (1835.082	+	1761.384)	/ 2 )
	=	43.608	/	1798.233
	=	2.43 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2016 )		(Q: Sep. 2016 )		(Q: Dec. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2016 )		(Q: Sep. 2016 )		(Q: Dec. 2016 )
	=	166.848	/	( ( (1983.366 - 284.229)	+	(2055.264 - 293.88) )	/ 2 )
	=	166.848	/	( ( 1699.137	+	1761.384 )	/ 2 )
	=	166.848	/	1730.2605
	=	9.64 %

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

Chemtura (XPAR:CHMT) 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.

Chemtura ROCE % Related Terms

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Chemtura (XPAR:CHMT) Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Chemtura Corp (XPAR:CHMT) » Definitions » ROCE %

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Address

Website

http://www.chemtura.com

Chemtura manufactures and sells a variety of chemicals, which include lubricants and bromine. The company organizes itself into two segments based on product type. The industrial performance products segment, which generates most of Chemtura's revenue, sells synthetic lubricants and specialty greases that reduce friction for engines and machines. These products are typically sold to the automotive, aviation, marine, and refrigeration industries. The industrial engineered products segment sells a variety of bromine-based products, which include brominated flame retardants for consumer electronics, oil and gas drilling fluids, and pesticides for the agricultural industry. More revenue comes from North America than any other region.

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