The ROCE of Allegiance Bancshares Inc is 1.38%
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.
Allegiance is a Houston, Texas based bank holding company. Through its wholly owned subsidiary, Allegiance Bank, Allegiance provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers within the Houston region. Allegiance operates 28 full-service banking locations, with 27 bank offices in the Houston metropolitan area and one bank office in Beaumont, just outside of the Houston metropolitan area.