Sears Holdings (Sears Holdings) ROCE % : -110.31% (As of Oct. 2018)

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What is Sears Holdings 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. Sears Holdings's annualized ROCE % for the quarter that ended in Oct. 2018 was -110.31%.

Sears Holdings ROCE % Historical Data

The historical data trend for Sears Holdings'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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Sears Holdings ROCE % Chart

Sears Holdings Annual Data

Trend

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

ROCE %

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-7.27

-16.21

-16.92

-39.47

-16.65

Sears Holdings Quarterly Data
	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Oct19
ROCE %	Get a 7-Day Free Trial															-57.50	-42.30	-54.00	-110.31	-

Sears Holdings ROCE % Calculation

Sears Holdings's annualized ROCE % for the fiscal year that ended in Jan. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2018 )		(A: Jan. 2017 )		(A: Jan. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2018 )		(A: Jan. 2017 )		(A: Jan. 2018 )
	=	-585	/	( ( (9362 - 4681)	+	(7262 - 4915) )	/ 2 )
	=	-585	/	( (4681	+	2347)	/ 2 )
	=	-585	/	3514
	=	-16.65 %

Sears Holdings's ROCE % of for the quarter that ended in Oct. 2018 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2018 )		(Q: Jul. 2018 )		(Q: Oct. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2018 )		(Q: Jul. 2018 )		(Q: Oct. 2018 )
	=	-3248	/	( ( (6937 - 4277)	+	(6677 - 3448) )	/ 2 )
	=	-3248	/	( ( 2660	+	3229 )	/ 2 )
	=	-3248	/	2944.5
	=	-110.31 %

(1) Note: The EBIT data used here is four times the quarterly (Oct. 2018) EBIT data.

Sears Holdings (NAS:SHLDW) 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.

Sears Holdings ROCE % Related Terms

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Sears Holdings (Sears Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Sears Holdings Corp (NAS:SHLDW) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3333 Beverly Road, Hoffman Estates, IL, USA, 60179

Website

http://www.searsholdings.com

Sears Holdings Corporation is an America-based retailer that integrates the digital and physical shopping experiences for consumers. The company operates through retail store brands Sears and Kmart. Sears provides a broad range of home merchandise, apparel, automotive products and home services through both online and offline channels across the United States, and it owns proprietary brands, including Kenmore, Craftsman, and DieHard. Kmart is a mass merchandising firm, offering quality products to customers through exclusive brands. The majority of the company's revenue comes from the domestic market.