Velan (TSX:VLN) ROCE % : 6.68% (As of Feb. 2024)

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What is Velan 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. Velan's annualized ROCE % for the quarter that ended in Feb. 2024 was 6.68%.

Velan ROCE % Historical Data

The historical data trend for Velan'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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Velan ROCE % Chart

Velan Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROCE %

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-1.66

0.88

10.30

-13.45

-1.68

Velan Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															-50.96	-7.52	0.51	-6.23	6.68

Velan ROCE % Calculation

Velan's annualized ROCE % for the fiscal year that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	-7.46	/	( ( (642.909 - 184.266)	+	(647.181 - 216.522) )	/ 2 )
	=	-7.46	/	( (458.643	+	430.659)	/ 2 )
	=	-7.46	/	444.651
	=	-1.68 %

Velan'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: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	29.256	/	( ( (633.782 - 188.961)	+	(647.181 - 216.522) )	/ 2 )
	=	29.256	/	( ( 444.821	+	430.659 )	/ 2 )
	=	29.256	/	437.74
	=	6.68 %

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

Velan (TSX:VLN) 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.

Velan ROCE % Related Terms

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Velan (TSX:VLN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Velan Inc (TSX:VLN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

VLNSF:USA 946:Germany

Address

7007 Cote de Liesse, Montreal, QC, CAN, H4T 1G2

Website

https://www.velan.com

Velan Inc is an international manufacturer of industrial valves. It offers products such as Gate valves, check valves, cryogenic, steam traps, and others, which are used in various industries including power generation, oil, and gas, refining and petrochemicals, chemical, liquid natural gas (LNG) and cryogenics, pulp and paper, geothermal processes and shipbuilding. The company operates in various geographical regions: Canada, the United States, France, Italy, and Other countries.