Span-America Medical Systems (Span-America Medical Systems) ROCE % : 30.14% (As of Mar. 2017)

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What is Span-America Medical Systems 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. Span-America Medical Systems's annualized ROCE % for the quarter that ended in Mar. 2017 was 30.14%.

Span-America Medical Systems ROCE % Historical Data

The historical data trend for Span-America Medical Systems'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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Span-America Medical Systems ROCE % Chart

Span-America Medical Systems Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

ROCE %

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26.78

23.64

11.71

20.13

23.12

Span-America Medical Systems Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
ROCE %	Get a 7-Day Free Trial															16.99	21.52	27.80	20.58	30.14

Span-America Medical Systems ROCE % Calculation

Span-America Medical Systems's annualized ROCE % for the fiscal year that ended in Sep. 2016 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2016 )		(A: Sep. 2015 )		(A: Sep. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2016 )		(A: Sep. 2015 )		(A: Sep. 2016 )
	=	6.079	/	( ( (32.182 - 7.155)	+	(33.562 - 5.994) )	/ 2 )
	=	6.079	/	( (25.027	+	27.568)	/ 2 )
	=	6.079	/	26.2975
	=	23.12 %

Span-America Medical Systems's ROCE % of for the quarter that ended in Mar. 2017 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2017 )		(Q: Dec. 2016 )		(Q: Mar. 2017 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2017 )		(Q: Dec. 2016 )		(Q: Mar. 2017 )
	=	8.56	/	( ( (33.159 - 5.323)	+	(33.9 - 4.934) )	/ 2 )
	=	8.56	/	( ( 27.836	+	28.966 )	/ 2 )
	=	8.56	/	28.401
	=	30.14 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2017) EBIT data.

Span-America Medical Systems (NAS:SPAN) 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.

Span-America Medical Systems ROCE % Related Terms

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Span-America Medical Systems (Span-America Medical Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Span-America Medical Systems Inc (NAS:SPAN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.spanamerica.com

Span-America Medical Systems Inc was incorporated under the laws of the state of South Carolina on September 21, 1970. The Company manufactures and distributes therapeutic support surfaces, mattress overlays, patient positioners, seating cushions, skin care products and fall prevention products for the medical market and pillows, mattress pads and various foam products for the custom products market throughout the United States and Canada. Its operations are divided into two main business units or segments: medical and custom products. The Company's main medical products consist of polyurethane foam mattress overlays, therapeutic support surfaces (which consist of non-powered and powered therapeutic support surfaces) and patient positioners as well as Selan (r) skin care, seating and fall protection products. The Company's custom products segment includes two product lines namely consumer bedding products and various engineered industrial products. The Company's consumer product line consists mainly of convoluted and contour-cut mattress overlays and specially designed pillows for the consumer bedding market. It sells these products mainly in North America to customers in the segments of the health care market, including acute care hospitals, long-term care facilities and home health care providers. The Company's manufacturing operations are subject to various government regulations pertaining to the discharge of materials into the environment.

Executives

Terry Allison Rappuhn	director	P O BOX 58062, NASHVILLE TN 37205
Thomas Joseph Sullivan	director	64 PETTIT PL PRINCETON NJ 08540
Robert B Johnston	director

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