Constellation Software (Constellation Software) ROCE % : 3.49% (As of Dec. 2023)

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What is Constellation Software 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. Constellation Software's annualized ROCE % for the quarter that ended in Dec. 2023 was 3.49%.

Constellation Software ROCE % Historical Data

The historical data trend for Constellation Software'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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Constellation Software ROCE % Chart

Constellation Software Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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29.52

31.48

15.14

21.96

9.01

Constellation Software 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															23.30	-1.24	11.01	23.91	3.49

Constellation Software ROCE % Calculation

Constellation Software'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 )
	=	428	/	( ( (7872 - 3772)	+	(10899 - 5495) )	/ 2 )
	=	428	/	( (4100	+	5404)	/ 2 )
	=	428	/	4752
	=	9.01 %

Constellation Software'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 )
	=	180	/	( ( (10004 - 5098)	+	(10899 - 5495) )	/ 2 )
	=	180	/	( ( 4906	+	5404 )	/ 2 )
	=	180	/	5155
	=	3.49 %

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

Constellation Software (OTCPK:CNSWF) 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.

Constellation Software ROCE % Related Terms

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Constellation Software (Constellation Software) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Constellation Software Inc (OTCPK:CNSWF) » Definitions » ROCE %

Comparable Companies

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W9C:Germany CSU:Canada

Address

20 Adelaide Street East, Suite 1200, Toronto, ON, CAN, M5C 2T6

Website

https://www.csisoftware.com

Constellation Software Inc is a Canada-based company that develops and customizes software for public- and private-sector markets. The firm acquires, manages, and builds vertical-specific businesses. The portfolio companies serve various markets including communications, credit unions, beverage distribution, tour operators, auto clubs, textiles and apparel, hospitality, and community care. The firm has operations in Canada; USA; UK/Europe and Other.