Commercial Metals Co (Commercial Metals Co) ROCE %

: 8.73% (As of Feb. 2024)

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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. Commercial Metals Co's annualized ROCE % for the quarter that ended in Feb. 2024 was 8.73%.

Commercial Metals Co ROCE % Historical Data

The historical data trend for Commercial Metals Co'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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Commercial Metals Co Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROCE %

11.62

13.52

16.75

36.68

21.77

Commercial Metals Co Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %																18.50	23.01	17.18	16.16	8.73

Commercial Metals Co ROCE % Calculation

Commercial Metals Co's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	1162.094	/	( ( (6237.027 - 1356.987)	+	(6639.094 - 843.714) )	/ 2 )
	=	1162.094	/	( (4880.04	+	5795.38)	/ 2 )
	=	1162.094	/	5337.71
	=	21.77 %

Commercial Metals Co's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	515.188	/	( ( (6695.169 - 786.955)	+	(6662.265 - 762.547) )	/ 2 )
	=	515.188	/	( ( 5908.214	+	5899.718 )	/ 2 )
	=	515.188	/	5903.966
	=	8.73 %

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

Commercial Metals Co (NYSE:CMC) 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.

Commercial Metals Co ROCE % Related Terms

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Commercial Metals Co (Commercial Metals Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Commercial Metals Co (NYSE:CMC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CMC1:Mexico CMS:Germany

Address

6565 North MacArthur Boulevard, Irving, TX, USA, 75039

Website

https://www.cmc.com

Commercial Metals Co operates steel mills, steel fabrication plants, and metal recycling facilities in the United States and manufactures rebar and structural steel, which are key product categories for the nonresidential construction sector. The Company has two reportable segments: North America and Europe.

Executives

Barbara Smith	director, officer: Chairman, President & CEO	6565 N. MACARTHUR BLVD., SUITE 800, IVING TX 75039
Stephen William Simpson	officer: SVP, N. American Steel Group	6565 NORTH MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Peter R Matt	director	6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Lindsay L Sloan	officer: VP, Chief Accounting Officer	6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Ty L Garrison	officer: SVP Operations	6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Robert S Wetherbee	director	MINERALS TECHNOLOGIES INC, 622 THIRD AVENUE 38TH FL, NEW YORK NY 10017
John R Mcpherson	director	1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Tracy L Porter	officer: EVP & Chief Operating Officer	6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Gary E Mccullough	director	231 N. MARTINGALE ROAD, SCHAUMBURG IL 60173
Jody K Absher	officer: VP General Counsel & Corp Sec	6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Paul James Lawrence	officer: VP & Chief Financial Officer	6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Adam R Hickey	officer: VP & Chief Accounting Officer	6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Lisa M Barton	director	AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
J David Smith	director	GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
Charles L Szews	director	6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039