McGrath RentCorp (FRA:MG8) ROCE % : 8.69% (As of Mar. 2024)

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What is McGrath RentCorp 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. McGrath RentCorp's annualized ROCE % for the quarter that ended in Mar. 2024 was 8.69%.

McGrath RentCorp ROCE % Historical Data

The historical data trend for McGrath RentCorp'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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McGrath RentCorp ROCE % Chart

McGrath RentCorp Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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12.87

11.85

10.16

10.75

11.17

McGrath RentCorp 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															5.06	10.73	14.93	11.79	8.69

McGrath RentCorp ROCE % Calculation

McGrath RentCorp'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 )
	=	174.25	/	( ( (1612.205 - 270.735)	+	(2033.249 - 255.798) )	/ 2 )
	=	174.25	/	( (1341.47	+	1777.451)	/ 2 )
	=	174.25	/	1559.4605
	=	11.17 %

McGrath RentCorp'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 )
	=	156.764	/	( ( (2033.249 - 255.798)	+	(2082.354 - 253.536) )	/ 2 )
	=	156.764	/	( ( 1777.451	+	1828.818 )	/ 2 )
	=	156.764	/	1803.1345
	=	8.69 %

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

McGrath RentCorp (FRA:MG8) 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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McGrath RentCorp (FRA:MG8) Business Description

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MGRC:USA

Address

5700 Las Positas Road, Livermore, CA, USA, 94551-7800

Website

https://www.mgrc.com

McGrath RentCorp is a rental company. It is comprised of four reportable business segments: Modular building and portable storage segment (Mobile Modular), Electronic test equipment segment (TRS-RenTelco), Containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks) and Classroom manufacturing division selling modular classrooms in California (Enviroplex). The company generates its revenues majorily from the rental of its equipment on operating leases with sales of equipment occurring in the normal course of business.

McGrath RentCorp (FRA:MG8) Headlines

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