Alcoa (XTER:185) ROCE % : 8.08% (As of Sep. 2024)

View and export this data going back to 2020. Start your Free Trial

What is Alcoa 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. Alcoa's annualized ROCE % for the quarter that ended in Sep. 2024 was 8.08%.

Alcoa ROCE % Historical Data

The historical data trend for Alcoa'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.

* Premium members only.

Alcoa ROCE % Chart

Alcoa Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

-2.54

2.52

12.10

7.08

-4.11

Alcoa 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															-7.13	-1.73	-10.65	4.73	8.08

Alcoa ROCE % Calculation

Alcoa'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 )
	=	-437.409	/	( ( (13929.664 - 2835.776)	+	(12980.135 - 2778.51) )	/ 2 )
	=	-437.409	/	( (11093.888	+	10201.625)	/ 2 )
	=	-437.409	/	10647.7565
	=	-4.11 %

Alcoa'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 )
	=	821.712	/	( ( (13291.203 - 2941.214)	+	(13102.342 - 3116.559) )	/ 2 )
	=	821.712	/	( ( 10349.989	+	9985.783 )	/ 2 )
	=	821.712	/	10167.886
	=	8.08 %

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

Alcoa (XTER:185) 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.

Alcoa ROCE % Related Terms

Thank you for viewing the detailed overview of Alcoa's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Alcoa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Corp (XTER:185) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AA:USA AA1:Mexico 1AA:Italy 0HCB:UK AAI:Australia ALCA:Austria

Address

201 Isabella Street, Suite 500, Pittsburgh, PA, USA, 15212-5858

Website

https://www.alcoa.com

Alcoa is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and manufacturing primary aluminum. It is the world's largest bauxite miner and alumina refiner by production volume, and the eighth-largest aluminum producer. Profits are closely tied to prevailing commodity prices along the aluminum supply chain.Alcoa was the first mass producer of aluminum, launching the world-changing Hall-Heroult smelting process in the 1880s, making aluminum affordable. It listed as a public company in 1925. In 2016, Alcoa spun off its automotive and aerospace metal parts segment to focus on mining, smelting, and refining. It bought the 40% unowned balance of AWAC in mid-2024, meaning refining assets are now predominantly wholly owned, as with smelting.

Alcoa Headlines

No Headlines