Imperial Oil (Imperial Oil) ROCE %

: 20.06% (As of Dec. 2023)

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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. Imperial Oil's annualized ROCE % for the quarter that ended in Dec. 2023 was 20.06%.

Imperial Oil ROCE % Historical Data

The historical data trend for Imperial Oil'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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Imperial Oil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

5.75

-6.58

9.55

26.51

18.72

Imperial Oil Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																26.61	18.87	10.22	23.42	20.06

Imperial Oil ROCE % Calculation

Imperial Oil'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 )
	=	4798.748	/	( ( (32038.278 - 6549.871)	+	(30708.855 - 4921.735) )	/ 2 )
	=	4798.748	/	( (25488.407	+	25787.12)	/ 2 )
	=	4798.748	/	25637.7635
	=	18.72 %

Imperial Oil's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	5241.504	/	( ( (32211.958 - 5744.587)	+	(30708.855 - 4921.735) )	/ 2 )
	=	5241.504	/	( ( 26467.371	+	25787.12 )	/ 2 )
	=	5241.504	/	26127.2455
	=	20.06 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Imperial Oil (AMEX:IMO) 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.

Imperial Oil ROCE % Related Terms

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Imperial Oil (Imperial Oil) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Imperial Oil Ltd (AMEX:IMO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

IMP:Germany IMO:Canada

Address

505 Quarry Park Boulevard S.E, Calgary, AB, CAN, T2C 5N1

Website

https://www.imperialoil.ca

Imperial Oil is one of Canada's largest integrated oil companies, focusing on upstream operations, petroleum refining operations, and the marketing of petroleum products. Production averaged 398 thousand barrels of oil equivalent per day in 2020. The company estimates that it holds 5.2 billion boe of proved and probable crude oil and natural gas reserves. Imperial remains the largest refiner of petroleum products in Canada, operating three refineries with a combined processing capacity of 421 mboe/d. The Upstream segment operates to produce crude oil and its equivalent, and natural gas. The Downstream segment operates to refine crude oil into petroleum products. The Chemical segment manufactures hydrocarbon-based chemicals and chemical products.