KONE Oyj (KONE Oyj) ROCE % : 33.35% (As of Mar. 2024)

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What is KONE Oyj 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. KONE Oyj's annualized ROCE % for the quarter that ended in Mar. 2024 was 33.35%.

KONE Oyj ROCE % Historical Data

The historical data trend for KONE Oyj'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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KONE Oyj ROCE % Chart

KONE Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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31.40

32.83

32.45

26.20

34.10

KONE Oyj Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															30.97	38.94	39.85	40.85	33.35

KONE Oyj ROCE % Calculation

KONE Oyj's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1342.857	/	( ( (9629.661 - 5724.364)	+	(9521.047 - 5550.709) )	/ 2 )
	=	1342.857	/	( (3905.297	+	3970.338)	/ 2 )
	=	1342.857	/	3937.8175
	=	34.10 %

KONE Oyj's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	1198.696	/	( ( (9521.047 - 5550.709)	+	(9024.457 - 5805.217) )	/ 2 )
	=	1198.696	/	( ( 3970.338	+	3219.24 )	/ 2 )
	=	1198.696	/	3594.789
	=	33.35 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

KONE Oyj (OTCPK:KNYJF) 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.

KONE Oyj ROCE % Related Terms

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KONE Oyj (KONE Oyj) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » KONE Oyj (OTCPK:KNYJF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KNYJY:USA 1KNEBV:Italy KNEBVh:UK 0II2:UK KNEBV:Finland KC4:Germany

Address

Keilasatama 3, P.O. Box 7, Espoo, FIN, FI-02150

Website

https://www.kone.com

Kone is a global top-four supplier of elevators and escalators. Kone began producing elevators in Finland in 1918 and today generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing its installed base. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. The bulk of Kone's business is in elevators, which are more numerous globally than escalators. Its business model is similar to its closest competitors Otis, Schindler, and TK Elevator.