Rolls-Royce Holdings (Rolls-Royce Holdings) ROCE % : 15.30% (As of Dec. 2023)

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What is Rolls-Royce 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. Rolls-Royce Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 15.30%.

Rolls-Royce Holdings ROCE % Historical Data

The historical data trend for Rolls-Royce 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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Rolls-Royce Holdings ROCE % Chart

Rolls-Royce Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-4.25

-16.16

-0.26

-6.84

17.77

Rolls-Royce Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															-3.04	-18.05	5.19	21.24	15.30

Rolls-Royce Holdings ROCE % Calculation

Rolls-Royce 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 )
	=	3539.241	/	( ( (35870.889 - 16952.497)	+	(39888.608 - 18963.291) )	/ 2 )
	=	3539.241	/	( (18918.392	+	20925.317)	/ 2 )
	=	3539.241	/	19921.8545
	=	17.77 %

Rolls-Royce 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: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	3048.102	/	( ( (37553.03 - 18621.212)	+	(39888.608 - 18963.291) )	/ 2 )
	=	3048.102	/	( ( 18931.818	+	20925.317 )	/ 2 )
	=	3048.102	/	19928.5675
	=	15.30 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Rolls-Royce Holdings (OTCPK:RYCEY) 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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Rolls-Royce Holdings (Rolls-Royce Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Rolls-Royce Holdings PLC (OTCPK:RYCEY) » Definitions » ROCE %

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Traded in Other Exchanges

RYCEF:USA RLLCF.PFD:USA RRl:UK RR.:UK RRU:Germany

Address

90 York Way, Kings Place, London, GBR, N1 9FX

Website

https://www.rolls-royce.com

Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.