Lojas Renner (BSP:LREN3) ROCE % : 21.90% (As of Dec. 2023)

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What is Lojas Renner 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. Lojas Renner's annualized ROCE % for the quarter that ended in Dec. 2023 was 21.90%.

Lojas Renner ROCE % Historical Data

The historical data trend for Lojas Renner'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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Lojas Renner ROCE % Chart

Lojas Renner Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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30.07

18.03

9.00

13.97

9.11

Lojas Renner Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															20.72	1.51	9.04	5.41	21.90

Lojas Renner ROCE % Calculation

Lojas Renner'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 )
	=	1236.943	/	( ( (21148.892 - 7005.579)	+	(20490.638 - 7492.553) )	/ 2 )
	=	1236.943	/	( (14143.313	+	12998.085)	/ 2 )
	=	1236.943	/	13570.699
	=	9.11 %

Lojas Renner'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 )
	=	2853.208	/	( ( (19959.761 - 6901.67)	+	(20490.638 - 7492.553) )	/ 2 )
	=	2853.208	/	( ( 13058.091	+	12998.085 )	/ 2 )
	=	2853.208	/	13028.088
	=	21.90 %

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

Lojas Renner (BSP:LREN3) 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.

Lojas Renner ROCE % Related Terms

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Lojas Renner (BSP:LREN3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Lojas Renner SA (BSP:LREN3) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LRENY:USA

Address

Avenida Joaquim Porto Villanova, 401, Porto Alegre, RS, BRA, 91410-400

Website

https://www.lojasrenner.com.br

Lojas Renner SA is a retailer that operates stores under brand names including Renner, Camicado, and Youcom. Renner and Youcom stores sell clothing, sports articles, accessories, and cosmetics. Camicado sells houseware and home decor products, including appliances, towels and linen, and kitchen products. Lojas retail segment provides the vast majority of the company's revenue. The company also has a financial products segment that offers credit cards to its customers. Nearly all of the company's stores and sales are in Brazil.

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