AB Dynamics (LSE:ABDP) ROCE % : 8.03% (As of Feb. 2024)

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What is AB Dynamics 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. AB Dynamics's annualized ROCE % for the quarter that ended in Feb. 2024 was 8.03%.

AB Dynamics ROCE % Historical Data

The historical data trend for AB Dynamics'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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AB Dynamics ROCE % Chart

AB Dynamics Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROCE %

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15.31

4.20

3.56

5.01

9.61

AB Dynamics Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
ROCE %	Get a 7-Day Free Trial															4.44	5.64	4.52	14.45	8.03

AB Dynamics ROCE % Calculation

AB Dynamics's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	12.201	/	( ( (141.723 - 22.629)	+	(170.643 - 35.874) )	/ 2 )
	=	12.201	/	( (119.094	+	134.769)	/ 2 )
	=	12.201	/	126.9315
	=	9.61 %

AB Dynamics's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	10.942	/	( ( (170.643 - 35.874)	+	(170.531 - 32.889) )	/ 2 )
	=	10.942	/	( ( 134.769	+	137.642 )	/ 2 )
	=	10.942	/	136.2055
	=	8.03 %

(1) Note: The EBIT data used here is two times the semi-annual (Feb. 2024) EBIT data.

AB Dynamics (LSE:ABDP) 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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AB Dynamics (LSE:ABDP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » AB Dynamics PLC (LSE:ABDP) » Definitions » ROCE %

Comparable Companies

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ABDP.GB:UK

Address

Middleton Drive, Bradford on Avon, Wiltshire, GBR, BA15 1GB

Website

https://www.abdplc.com

AB Dynamics PLC supplies measurement and testing equipment to the automotive industry. The principal activity of the Group is the design, manufacture, and supply of testing, simulation and measurement products for the global transport market. The Group derives the majority of revenue from Laboratory testing and simulation and includes Track testing. Geographically, key revenue is generated from Asia Pacific that includes the United Kingdom, the Rest of European, North America, and the Rest of the World.

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