Sumitomo Electric Industries (Sumitomo Electric Industries) ROCE % : 12.30% (As of Dec. 2023)

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What is Sumitomo Electric Industries 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. Sumitomo Electric Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.30%.

Sumitomo Electric Industries ROCE % Historical Data

The historical data trend for Sumitomo Electric Industries'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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Sumitomo Electric Industries ROCE % Chart

Sumitomo Electric Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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8.42

6.56

5.05

6.44

7.75

Sumitomo Electric Industries 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															7.24	14.51	3.41	6.70	12.30

Sumitomo Electric Industries ROCE % Calculation

Sumitomo Electric Industries's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	1590.395	/	( ( (32108.901 - 10626.764)	+	(30023.035 - 10469.564) )	/ 2 )
	=	1590.395	/	( (21482.137	+	19553.471)	/ 2 )
	=	1590.395	/	20517.804
	=	7.75 %

Sumitomo Electric Industries'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 )
	=	2385.028	/	( ( (28125.963 - 9033.413)	+	(29316.857 - 9625.431) )	/ 2 )
	=	2385.028	/	( ( 19092.55	+	19691.426 )	/ 2 )
	=	2385.028	/	19391.988
	=	12.30 %

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

Sumitomo Electric Industries (OTCPK:SMTOY) 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.

Sumitomo Electric Industries ROCE % Related Terms

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Sumitomo Electric Industries (Sumitomo Electric Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Sumitomo Electric Industries Ltd (OTCPK:SMTOY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

5802:Japan SMO:Germany

Address

4-5-33, Kitahama, Chuo-ku, Osaka, JPN, 541-0041

Website

http://www.sei.co.jp

Sumitomo Electric Industries Ltd manufactures and sells electric wires and cables, and other products. The company is engaged in diversified business activities supporting people's daily lives and industry through five business segments: Automotive, Infocommunications, Electronics, Environment and Energy, and Industrial Materials and Others. The Automobile-related segment offers wire harnesses, rubber cushions, hoses for automobiles, automobile electrical parts and others. Sumitomo's Information Communications-related segment offers fiber-optic cables, electrical cables and equipment for communications use, optical communications-related parts and others. It derives most of the revenue from Japan.

Sumitomo Electric Industries (Sumitomo Electric Industries) Headlines

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