Southern ROCE
What is the ROCE of Southern?
The ROCE of Southern Company is 6.19%
What is the definition of ROCE?
Return on capital employed (ROCE) is a financial ratio that measures a company’s profitability and the efficiency with which its capital is used.
= EBIT / (assets - current liabilities)
Return on capital employed (ROCE) is the total amount of capital that a company has utilized in order to generate profits. It is the sum of shareholders' equity and debt liabilities. It can be simplified as total assets minus current liabilities.
ROCE is especially useful when comparing the performance of companies in capital-intensive sectors. ROCE considers debt and other liabilities as well compared to other fundamentals which only analyze profitability related to a company’s common equity. This provides a better indication of financial performance for companies with significant debt. For a company, the ROCE trend over the years is also an important indicator of performance. In general, investors tend to favor companies with stable and rising ROCE numbers over companies where ROCE is volatile and bounces around from one year to the next.
Instead of using capital employed at an arbitrary point in time, analysts and investors often calculate ROCE based on the average capital employed (ROACE), which takes the average of opening and closing capital employed for the time period.
ROCE of companies in the Utilities sector on NYSE compared to Southern
What does Southern do?
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama. The company is the second largest utility company in the U.S. in terms of customer base, as of 2021.
Companies with roce similar to Southern
- MACOM Technology Solutions Inc has ROCE of 6.17%
- Universal Health Realty Income Trust has ROCE of 6.17%
- Turquoise Hill Resources Ltd has ROCE of 6.18%
- Crescent Capital BDC has ROCE of 6.18%
- Jewett-Cameron Trading has ROCE of 6.18%
- SpartanNash Co has ROCE of 6.18%
- Southern has ROCE of 6.19%
- Ryerson has ROCE of 6.20%
- Sleeping Giant Capital Corp has ROCE of 6.20%
- TEXAF SA has ROCE of 6.20%
- IEC Electronics has ROCE of 6.20%
- IEC Electronics has ROCE of 6.20%
- Pembina Pipeline has ROCE of 6.21%