Canadian Solar (Canadian Solar) ROCE % : 6.36% (As of Sep. 2023)

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What is Canadian Solar 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. Canadian Solar's annualized ROCE % for the quarter that ended in Sep. 2023 was 6.36%.

Canadian Solar ROCE % Historical Data

The historical data trend for Canadian Solar'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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Canadian Solar ROCE % Chart

Canadian Solar Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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21.71

12.08

7.75

6.24

12.08

Canadian Solar Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															16.09	14.08	15.26	23.39	6.36

Canadian Solar ROCE % Calculation

Canadian Solar's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	430.734	/	( ( (7388.342 - 4038.148)	+	(9037.128 - 5258.768) )	/ 2 )
	=	430.734	/	( (3350.194	+	3778.36)	/ 2 )
	=	430.734	/	3564.277
	=	12.08 %

Canadian Solar's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	345.836	/	( ( (11198.65 - 6002.482)	+	(11400.23 - 5712.618) )	/ 2 )
	=	345.836	/	( ( 5196.168	+	5687.612 )	/ 2 )
	=	345.836	/	5441.89
	=	6.36 %

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

Canadian Solar (NAS:CSIQ) 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.

Canadian Solar ROCE % Related Terms

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Canadian Solar (Canadian Solar) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Canadian Solar Inc (NAS:CSIQ) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CSIQ:Mexico L5A:Germany L5A:Germany

Address

545 Speedvale Avenue West, Guelph, ON, CAN, N1K 1E6

Website

https://www.canadiansolar.com

Canadian Solar Inc is a Canadian solar power company. It is an integrated provider of solar power products, services, and system solutions. The company engages in designing, developing and manufacturing solar ingots, wafers, cells, modules and other solar power products. It operates through two business segments CSI Solar and Global Energy segment. The CSI Solar segment design, develop and manufacture solar ingots, wafers, cells, modules and other solar power and battery storage products. Its Energy segment primarily comprises solar and battery storage project development and sale, O&M and asset management services for operational projects, sale of electricity, and investment in retained assets.