Formula Systems (1985) (Formula Systems (1985)) ROCE % : 13.11% (As of Sep. 2023)

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What is Formula Systems (1985) 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. Formula Systems (1985)'s annualized ROCE % for the quarter that ended in Sep. 2023 was 13.11%.

Formula Systems (1985) ROCE % Historical Data

The historical data trend for Formula Systems (1985)'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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Formula Systems (1985) ROCE % Chart

Formula Systems (1985) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.64

10.29

11.41

15.31

13.22

Formula Systems (1985) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															13.16	13.65	13.44	13.11	13.48

Formula Systems (1985) ROCE % Calculation

Formula Systems (1985)'s annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	275.144	/	( ( (2748.566 - 947.596)	+	(2793.955 - 1000.987) )	/ 2 )
	=	275.144	/	( (1800.97	+	1792.968)	/ 2 )
	=	275.144	/	1796.969
	=	15.31 %

Formula Systems (1985)'s ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	232.984	/	( ( (2726.425 - 923.958)	+	(2656.965 - 904.466) )	/ 2 )
	=	232.984	/	( ( 1802.467	+	1752.499 )	/ 2 )
	=	232.984	/	1777.483
	=	13.11 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

Formula Systems (1985) (NAS:FORTY) 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.

Formula Systems (1985) ROCE % Related Terms

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Formula Systems (1985) (Formula Systems (1985)) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Formula Systems (1985) Ltd (NAS:FORTY) » Definitions » ROCE %

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FORTY:Israel FSY:Germany FSY:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Tel Aviv, ISR, 6037501

Website

https://www.formulasystems.com

Formula Systems (1985) Ltd is a holding company that, through its subsidiaries, provides information technology services. The company organizes itself into three primary segments based on the subsidiary. The Matrix segment, which generates the majority of revenue, provides software development and existing software expansion services. The Sapiens segment provides software development services for the insurance industry. The Magic Software segment provides vendor management systems and workforce management services, which include accounting and finance, human resources, IT technology, and marketing and sales. Michpal; ZAP Group and Others. The majority of the company's revenue comes from Israel.