Localiza Rent A Car (BSP:RENT3) ROCE % : 13.82% (As of Dec. 2023)

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What is Localiza Rent A Car 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. Localiza Rent A Car's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.82%.

Localiza Rent A Car ROCE % Historical Data

The historical data trend for Localiza Rent A Car'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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Localiza Rent A Car ROCE % Chart

Localiza Rent A Car Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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12.89

12.13

19.75

14.65

12.18

Localiza Rent A Car 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															12.40	12.09	5.83	13.88	13.82

Localiza Rent A Car ROCE % Calculation

Localiza Rent A Car'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 )
	=	7123.39	/	( ( (65652.017 - 11236.806)	+	(80947.084 - 18417.023) )	/ 2 )
	=	7123.39	/	( (54415.211	+	62530.061)	/ 2 )
	=	7123.39	/	58472.636
	=	12.18 %

Localiza Rent A Car'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 )
	=	8398.676	/	( ( (73841.922 - 14843.656)	+	(80947.084 - 18417.023) )	/ 2 )
	=	8398.676	/	( ( 58998.266	+	62530.061 )	/ 2 )
	=	8398.676	/	60764.1635
	=	13.82 %

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

Localiza Rent A Car (BSP:RENT3) 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.

Localiza Rent A Car ROCE % Related Terms

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Localiza Rent A Car (BSP:RENT3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Localiza Rent A Car SA (BSP:RENT3) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LZRFY:USA

Address

Avenida Bernardo Vasconcelo, No 377 - Cachoeirinha, Belo Horizonte, MG, BRA, 31150-900

Website

https://www.localiza.com

Localiza Rent A Car SA is a car rental service provider with the majority of its operations in Brazil. Through its subsidiaries, the company rents cars to individuals, manages corporate car fleets, sells its fleet to the general public, and offers a franchise model. Franchisees account for roughly half of Localize's car rental locations, while the majority of cars accessible with Localize are owned by the company. The fleet rental division has long-term agreements with companies that come up for renewal roughly every two to three years. The car rental segment delivers three-quarters of yearly revenue, and fleet rental makes up the rest, with an insignificant share contributed by the franchise management division.

Localiza Rent A Car (BSP:RENT3) Headlines

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