Karooooo (Karooooo) ROCE % : 37.86% (As of Nov. 2023)

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What is Karooooo 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. Karooooo's annualized ROCE % for the quarter that ended in Nov. 2023 was 37.86%.

Karooooo ROCE % Historical Data

The historical data trend for Karooooo'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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Karooooo ROCE % Chart

Karooooo Annual Data

Trend

Feb19

Feb20

Feb21

Feb22

Feb23

ROCE %

43.38

46.95

48.71

34.76

30.81

Karooooo Quarterly Data
	Feb19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
ROCE %	Get a 7-Day Free Trial													32.15	34.16	31.84	36.54	37.86

Karooooo ROCE % Calculation

Karooooo's annualized ROCE % for the fiscal year that ended in Feb. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2023 )		(A: Feb. 2022 )		(A: Feb. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2023 )		(A: Feb. 2022 )		(A: Feb. 2023 )
	=	50.45	/	( ( (203.036 - 41.015)	+	(209.507 - 44.086) )	/ 2 )
	=	50.45	/	( (162.021	+	165.421)	/ 2 )
	=	50.45	/	163.721
	=	30.81 %

Karooooo's ROCE % of for the quarter that ended in Nov. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2023 )		(Q: Aug. 2023 )		(Q: Nov. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2023 )		(Q: Aug. 2023 )		(Q: Nov. 2023 )
	=	61.092	/	( ( (201.117 - 47.168)	+	(221.647 - 52.889) )	/ 2 )
	=	61.092	/	( ( 153.949	+	168.758 )	/ 2 )
	=	61.092	/	161.3535
	=	37.86 %

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

Karooooo (NAS:KARO) 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.

Karooooo ROCE % Related Terms

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Karooooo (Karooooo) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Karooooo Ltd (NAS:KARO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KRO:South Africa

Address

1 Harbourfront Avenue, Keppel Bay Tower No. 14-07, Singapore, SGP, 098632

Website

https://www.karooooo.com

Karooooo Ltd is a global provider of real-time mobility data analytics solutions for smart transportation. It offers a comprehensive, cloud-based smart mobility platform for connected vehicles and other assets. The company's software-as-a-service platform provides customers with differentiated insights and analytics to optimize business and workforce, increase efficiency and decrease costs, improve safety, monitor environmental impact, assist with regularity compliance and manage risk. The segments of the group are Cartrack; Carzuka; and Karooooo Logistics, of which key revenue is derived from the Cartrack segment.