Fortrea Holdings (FRA:K67) ROCE % : -4.74% (As of Mar. 2024)

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What is Fortrea Holdings 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. Fortrea Holdings's annualized ROCE % for the quarter that ended in Mar. 2024 was -4.74%.

Fortrea Holdings ROCE % Historical Data

The historical data trend for Fortrea Holdings'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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Fortrea Holdings ROCE % Chart

Fortrea Holdings Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROCE %

3.86

6.87

1.95

Fortrea Holdings Quarterly Data
	Dec20	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial						1.62	4.34	1.88	-0.72	-4.74

Fortrea Holdings ROCE % Calculation

Fortrea Holdings'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 )
	=	65.015	/	( ( (4047.778 - 659.856)	+	(3995.552 - 711.5) )	/ 2 )
	=	65.015	/	( (3387.922	+	3284.052)	/ 2 )
	=	65.015	/	3335.987
	=	1.95 %

Fortrea Holdings'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 )
	=	-152.352	/	( ( (3995.552 - 711.5)	+	(3900.984 - 752.836) )	/ 2 )
	=	-152.352	/	( ( 3284.052	+	3148.148 )	/ 2 )
	=	-152.352	/	3216.1
	=	-4.74 %

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

Fortrea Holdings (FRA:K67) 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.

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Fortrea Holdings (FRA:K67) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Fortrea Holdings Inc (FRA:K67) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

FTRE:USA

Address

8 Moore Drive, Durham, NC, USA, 27709

Website

https://www.fortrea.com

Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after LabCorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.

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