Friedman Industries (FRA:X36) ROCE % : 4.49% (As of Dec. 2023)

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What is Friedman Industries 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. Friedman Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.49%.

Friedman Industries ROCE % Historical Data

The historical data trend for Friedman Industries'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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Friedman Industries ROCE % Chart

Friedman Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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9.85

-9.74

21.96

23.31

24.33

Friedman Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															5.81	23.75	26.61	12.40	4.49

Friedman Industries ROCE % Calculation

Friedman Industries's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	28.4	/	( ( (144.622 - 55.216)	+	(186.157 - 42.112) )	/ 2 )
	=	28.4	/	( (89.406	+	144.045)	/ 2 )
	=	28.4	/	116.7255
	=	24.33 %

Friedman Industries'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 )
	=	7.512	/	( ( (208.133 - 33.069)	+	(209.952 - 50.069) )	/ 2 )
	=	7.512	/	( ( 175.064	+	159.883 )	/ 2 )
	=	7.512	/	167.4735
	=	4.49 %

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

Friedman Industries (FRA:X36) 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.

Friedman Industries ROCE % Related Terms

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Friedman Industries (FRA:X36) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Friedman Industries Inc (FRA:X36) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

FRD:USA

Address

1121 Judson Road, Suite 124, Longview, TX, USA, 75601

Website

https://www.friedmanindustries.com

Friedman Industries Inc is engaged in the manufacturing and processing of steel products. The company's operating segments include Coil Products and Tubular Products. It generates maximum revenue from the Coil Products segment. The company's products and services include Temper Pass, Cut-To-Length, Whole Coils, Toll Processing, Electric Resistance Welded Pipe (ERW), New Mill Secondary, and Pipe Finishing Services.

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