Graco (FRA:GA8) ROCE % : 23.74% (As of Mar. 2024)

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What is Graco 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. Graco's annualized ROCE % for the quarter that ended in Mar. 2024 was 23.74%.

Graco ROCE % Historical Data

The historical data trend for Graco'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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Graco ROCE % Chart

Graco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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32.83

24.07

29.77

29.87

27.75

Graco Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															30.05	29.29	29.69	22.03	23.74

Graco ROCE % Calculation

Graco'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 )
	=	563.032	/	( ( (2302.322 - 377.522)	+	(2496.08 - 362.398) )	/ 2 )
	=	563.032	/	( (1924.8	+	2133.682)	/ 2 )
	=	563.032	/	2029.241
	=	27.75 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	519.152	/	( ( (2496.08 - 362.398)	+	(2563.879 - 323.552) )	/ 2 )
	=	519.152	/	( ( 2133.682	+	2240.327 )	/ 2 )
	=	519.152	/	2187.0045
	=	23.74 %

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

Graco (FRA:GA8) 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.

Graco ROCE % Related Terms

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Graco (FRA:GA8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Graco Inc (FRA:GA8) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

GGG:USA

Address

88-11th Avenue Northeast, Minneapolis, MN, USA, 55413

Website

https://www.graco.com

Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.1 billion in sales and $573 million in operating income in 2022.

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