Zimmer Biomet Holdings (LTS:0QQD) ROCE % : 6.95% (As of Dec. 2023)

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What is Zimmer Biomet Holdings 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. Zimmer Biomet Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.95%.

Zimmer Biomet Holdings ROCE % Historical Data

The historical data trend for Zimmer Biomet Holdings'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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Zimmer Biomet Holdings ROCE % Chart

Zimmer Biomet Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.26

0.47

3.44

2.95

6.54

Zimmer Biomet Holdings 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															-0.67	7.10	6.82	5.66	6.95

Zimmer Biomet Holdings ROCE % Calculation

Zimmer Biomet Holdings'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 )
	=	1096.999	/	( ( (19625.086 - 2196.899)	+	(18590.519 - 2471.08) )	/ 2 )
	=	1096.999	/	( (17428.187	+	16119.439)	/ 2 )
	=	1096.999	/	16773.813
	=	6.54 %

Zimmer Biomet Holdings's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	1158.14	/	( ( (19087.083 - 1863.521)	+	(18590.519 - 2471.08) )	/ 2 )
	=	1158.14	/	( ( 17223.562	+	16119.439 )	/ 2 )
	=	1158.14	/	16671.5005
	=	6.95 %

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

Zimmer Biomet Holdings (LTS:0QQD) 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.

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Zimmer Biomet Holdings (LTS:0QQD) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Zimmer Biomet Holdings Inc (LTS:0QQD) » Definitions » ROCE %

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ZBH:USA ZIM:Germany ZBH:Austria

Address

345 East Main Street, Warsaw, IN, USA, 46580

Website

https://www.zimmerbiomet.com

Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants, as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two thirds of total revenue is derived from sales of large joints, another quarter comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.

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