Argan (FRA:1AW) ROCE % : 15.77% (As of Jan. 2024)

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What is Argan 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. Argan's annualized ROCE % for the quarter that ended in Jan. 2024 was 15.77%.

Argan ROCE % Historical Data

The historical data trend for Argan'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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Argan ROCE % Chart

Argan Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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-14.00

6.55

16.54

13.85

12.44

Argan Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															12.98	5.05	18.39	11.10	15.77

Argan ROCE % Calculation

Argan's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	33.468	/	( ( (454.244 - 187.923)	+	(549.174 - 277.475) )	/ 2 )
	=	33.468	/	( (266.321	+	271.699)	/ 2 )
	=	33.468	/	269.01
	=	12.44 %

Argan's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	43.052	/	( ( (533.778 - 259.378)	+	(549.174 - 277.475) )	/ 2 )
	=	43.052	/	( ( 274.4	+	271.699 )	/ 2 )
	=	43.052	/	273.0495
	=	15.77 %

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

Argan (FRA:1AW) 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.

Argan ROCE % Related Terms

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Argan (FRA:1AW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Argan Inc (FRA:1AW) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AGX:USA 1AW:Germany

Address

One Church Street, Suite 201, Rockville, MD, USA, 20850

Website

https://www.arganinc.com

Argan Inc is a United States-based company that primarily operates in the power industry services segment through its wholly-owned subsidiaries. Gemma Power Systems and affiliates, one of Argan's subsidiaries, contributed almost all Argan's sales. GPS is a contractor that provides a full range of engineering, procurement, and construction services for power-generating projects. GPS' works encompass complete plant design, construction, electrical interconnection, plant testing, and commissioning. Argan also generates a small portion of sales from industrial fabrication and field services, as well as telecommunication infrastructure services. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derive majority revenue.

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