Ali Alghanim Sons Automotive Co KSC (KUW:ALG) ROCE % : 24.89% (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC 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. Ali Alghanim Sons Automotive Co KSC's annualized ROCE % for the quarter that ended in Mar. 2024 was 24.89%.

Ali Alghanim Sons Automotive Co KSC ROCE % Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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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Ali Alghanim Sons Automotive Co KSC ROCE % Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

ROCE %

18.02

21.99

29.53

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial							26.37	33.19	32.76	29.02	24.89

Ali Alghanim Sons Automotive Co KSC ROCE % Calculation

Ali Alghanim Sons Automotive Co KSC'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 )
	=	37.614	/	( ( (188.079 - 77.003)	+	(223.182 - 79.476) )	/ 2 )
	=	37.614	/	( (111.076	+	143.706)	/ 2 )
	=	37.614	/	127.391
	=	29.53 %

Ali Alghanim Sons Automotive Co KSC'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 )
	=	34.336	/	( ( (223.182 - 79.476)	+	(234.416 - 102.197) )	/ 2 )
	=	34.336	/	( ( 143.706	+	132.219 )	/ 2 )
	=	34.336	/	137.9625
	=	24.89 %

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

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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.

Ali Alghanim Sons Automotive Co KSC ROCE % Related Terms

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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ali Alghanim Sons Automotive Co KSC (KUW:ALG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website

https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.