Meritor (Meritor) ROCE % : 17.33% (As of Mar. 2022)

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What is Meritor 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. Meritor's annualized ROCE % for the quarter that ended in Mar. 2022 was 17.33%.

Meritor ROCE % Historical Data

The historical data trend for Meritor'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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Meritor ROCE % Chart

Meritor Annual Data

Trend

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

ROCE %

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29.97

21.28

24.65

19.42

14.92

Meritor Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
ROCE %	Get a 7-Day Free Trial															18.79	14.51	11.78	16.17	17.33

Meritor ROCE % Calculation

Meritor's annualized ROCE % for the fiscal year that ended in Sep. 2021 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2021 )		(A: Sep. 2020 )		(A: Sep. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2021 )		(A: Sep. 2020 )		(A: Sep. 2021 )
	=	313	/	( ( (2884 - 726)	+	(2938 - 900) )	/ 2 )
	=	313	/	( (2158	+	2038)	/ 2 )
	=	313	/	2098
	=	14.92 %

Meritor's ROCE % of for the quarter that ended in Mar. 2022 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2022 )		(Q: Dec. 2021 )		(Q: Mar. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2022 )		(Q: Dec. 2021 )		(Q: Mar. 2022 )
	=	364	/	( ( (3047 - 979)	+	(3322 - 1190) )	/ 2 )
	=	364	/	( ( 2068	+	2132 )	/ 2 )
	=	364	/	2100
	=	17.33 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2022) EBIT data.

Meritor (NYSE:MTOR) 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.

Meritor ROCE % Related Terms

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Meritor (Meritor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Meritor Inc (NYSE:MTOR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2135 West Maple Road, Troy, MI, USA, 48084-7186

Website

https://www.meritor.com

Meritor Inc is a manufacturer of automobile parts for commercial vehicles and industrial markets. The company offers drivetrain, axle, brake, and suspension solutions for commercial trucks, trailers, buses, coaches, off-highway machinery, and defence contractors. The company serves original equipment markets as well as the aftermarket segment for the transportation and industrial sectors. Meritor generates the majority of its revenue from its commercial truck and industrial segment. Geographically, sales are focused on North American markets.

Executives

Anderson Carl Douglas Ii	officer: SVP and CFO	C/O XPO, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
John Nelligan	officer: SVP & Pres., Truck, Americas	2490 PEBBLE BEACH DRIVE OAKLAND MI 48363
Jeffrey A Craig	director, officer: CEO & President	MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084
Chris Villavarayan	officer: Pres., Americas	C/O MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084
Paul Bialy	officer: VP, Controller & PAO	C/O MERITOR, INC. 2135 WEST MAPLE ROAD TROY MI 48084
Ken Hogan	officer: SVP & Pres. Truck, EUR & APAC	8250 LINCOLN DR HUNTINGTON WOODS MI 48070
Elizabeth Anne Fessenden	director	1137 WEST AVENUE, RICHMOND VA 23220
Bowes Timothy Earl Joseph	officer: SVP & Pres. Ind & NA Aftmkt	2135 WEST MAPLE ROAD, TROY MI 48084
Ivor J Evans	director	MERITOR, INC., 2135 WEST MAPLE ROAD, TROY MI 48084-7186
William R Newlin	director	C/O CARMELL THERAPEUTICS CORPORATION, 2403 SIDNEY STREET, SUITE 300, PITTSBURGH PA 15203
Timothy J. Heffron	officer: VP, HR & CIO	C/O MERITOR, INC. 2135 WEST MAPLE ROAD TROY MI 48084
Fazal F Merchant	director	2230 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245
Hannah S. Lim	officer: SVP, CLO & Corp Sec	2135 WEST MAPLE ROAD, TROY MI 48084
Joseph A. Plomin	officer: Pres., International	C/O MERITOR, INC. 2135 WEST MAPLE ROAD TROY MI 48084
Boise April Miller	officer: SVP, GC & Corp Sec	C/O INTEL CORPORATION, 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054