Brookfield Business (TSX:BBUC) ROCE % : -2.21% (As of Dec. 2023)

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What is Brookfield Business 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. Brookfield Business's annualized ROCE % for the quarter that ended in Dec. 2023 was -2.21%.

Brookfield Business ROCE % Historical Data

The historical data trend for Brookfield Business'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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Brookfield Business ROCE % Chart

Brookfield Business Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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4.05

3.47

1.98

2.81

3.27

Brookfield Business Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial											-0.55	4.95	4.40	4.62	-2.21

Brookfield Business ROCE % Calculation

Brookfield Business'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 )
	=	833.134	/	( ( (37190.296 - 8130.622)	+	(28417.771 - 6477.245) )	/ 2 )
	=	833.134	/	( (29059.674	+	21940.526)	/ 2 )
	=	833.134	/	25500.1
	=	3.27 %

Brookfield Business's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-536.64	/	( ( (35647.419 - 9027.883)	+	(28417.771 - 6477.245) )	/ 2 )
	=	-536.64	/	( ( 26619.536	+	21940.526 )	/ 2 )
	=	-536.64	/	24280.031
	=	-2.21 %

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

Brookfield Business (TSX:BBUC) 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.

Brookfield Business ROCE % Related Terms

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Brookfield Business (TSX:BBUC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Business Corp (TSX:BBUC) » Definitions » ROCE %

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BBUC:USA

Address

1055 West Georgia Street, Suite 1500, P.O. Box 11117, Vancouver, BC, CAN, V6E 4N7

Website

https://www.bbu.brookfield.com

Brookfield Business Corp is a company established as a vehicle that owns and operates certain services and industrial operations on a global basis and an alternative vehicle for investors who prefer investing in its operations through a corporate structure. Its goal is to generate returns through long-term capital appreciation with a modest distribution yield.