West Fraser Timber Co.Ltd (TSX:WFG) ROCE % : 2.74% (As of Mar. 2024)

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What is West Fraser Timber Co.Ltd 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. West Fraser Timber Co.Ltd's annualized ROCE % for the quarter that ended in Mar. 2024 was 2.74%.

West Fraser Timber Co.Ltd ROCE % Historical Data

The historical data trend for West Fraser Timber Co.Ltd'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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West Fraser Timber Co.Ltd ROCE % Chart

West Fraser Timber Co.Ltd Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-4.40

24.60

61.28

29.28

-2.31

West Fraser Timber Co.Ltd 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															-2.50	-7.47	9.92	-9.04	2.74

West Fraser Timber Co.Ltd ROCE % Calculation

West Fraser Timber Co.Ltd'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 )
	=	-273.686	/	( ( (13548.32 - 1075.932)	+	(12631.164 - 1408.68) )	/ 2 )
	=	-273.686	/	( (12472.388	+	11222.484)	/ 2 )
	=	-273.686	/	11847.436
	=	-2.31 %

West Fraser Timber Co.Ltd'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 )
	=	308.62	/	( ( (12631.164 - 1408.68)	+	(12698.122 - 1371.197) )	/ 2 )
	=	308.62	/	( ( 11222.484	+	11326.925 )	/ 2 )
	=	308.62	/	11274.7045
	=	2.74 %

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

West Fraser Timber Co.Ltd (TSX:WFG) 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.

West Fraser Timber Co.Ltd ROCE % Related Terms

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West Fraser Timber Co.Ltd (TSX:WFG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » West Fraser Timber Co.Ltd (TSX:WFG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WFG:USA WFC:Germany WFC:Germany

Address

c/o West Fraser Group, 858 Beatty Street, Vancouver, BC, CAN, V6B 1C1

Website

https://www.westfraser.com

West Fraser Timber is a softwood lumber company that also produces wood panels and pulp products. The company produces its wood products globally, with lumber mills in British Columbia, Alberta, Europe, and the southeastern United States. Following its acquisition of Norbord in 2021, West Fraser is now one of the largest oriented strand board, or OSB, producers in the world.