Premium Income ROCE
What is the ROCE of Premium Income?
The ROCE of Premium Income Corp. is 37.97%
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 Finance sector on TSX compared to Premium Income
What does Premium Income do?
Premium Income Corporation is an equity mutual fund launched and managed by Strathbridge Asset Management Inc. It invests in the public equity markets of Canada. It invests in stocks of companies operating primarily in the banking sector. The fund uses financial derivatives such as call and put options to invest in stocks of Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and Toronto Dominion Bank. It seeks to invest in stocks of dividend paying companies. The fund benchmarks the performance of its portfolio against the S&P/TSX Diversified Banks Total Return Index. Premium Income Corporation was formed on August 27, 1996 and is domiciled in Canada.
Companies with roce similar to Premium Income
- Compuage Infocom has ROCE of 37.49%
- NexTier Oilfield Solutions Inc has ROCE of 37.50%
- Waters has ROCE of 37.67%
- Softronic AB has ROCE of 37.69%
- frontdoor, inc has ROCE of 37.72%
- Laredo Petroleum has ROCE of 37.85%
- Premium Income has ROCE of 37.97%
- ICL has ROCE of 38.10%
- TriNet Inc has ROCE of 38.15%
- Abbott India has ROCE of 38.34%
- Incap Oyj has ROCE of 38.38%
- Target Hospitality has ROCE of 38.80%
- Public Joint Stock Mining and Metallurgical Norilsk Nickel has ROCE of 38.83%