UPM-Kymmene Oyj (UPM-Kymmene Oyj) ROCE % : 8.74% (As of Mar. 2024)

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What is UPM-Kymmene 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. UPM-Kymmene Oyj's annualized ROCE % for the quarter that ended in Mar. 2024 was 8.74%.

UPM-Kymmene Oyj ROCE % Historical Data

The historical data trend for UPM-Kymmene 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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UPM-Kymmene Oyj ROCE % Chart

UPM-Kymmene Oyj Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.74

6.30

10.88

11.50

3.22

UPM-Kymmene 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															5.47	2.61	-0.68	5.58	8.74

UPM-Kymmene Oyj ROCE % Calculation

UPM-Kymmene 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 )
	=	600.872	/	( ( (23524.364 - 3731.992)	+	(20145.038 - 2661.941) )	/ 2 )
	=	600.872	/	( (19792.372	+	17483.097)	/ 2 )
	=	600.872	/	18637.7345
	=	3.22 %

UPM-Kymmene 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 )
	=	1534.784	/	( ( (20145.038 - 2661.941)	+	(20088.043 - 2441.304) )	/ 2 )
	=	1534.784	/	( ( 17483.097	+	17646.739 )	/ 2 )
	=	1534.784	/	17564.918
	=	8.74 %

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

UPM-Kymmene Oyj (OTCPK:UPMKF) 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.

UPM-Kymmene Oyj ROCE % Related Terms

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UPM-Kymmene Oyj (UPM-Kymmene Oyj) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » UPM-Kymmene Oyj (OTCPK:UPMKF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

UPMMY:USA UPMh:UK 0NV5:UK UPM:Finland RPL:Germany

Address

Alvar Aallon katu 1, P.O. Box 380, Helsinki, FIN, FI-00100

Website

https://www.upm.com

UPM-Kymmene Oyj is a Finnish paper and biomaterials company. The company produces products related to the forestry industry including paper, pulp, and plywood. UPM is also a major electricity generator in Finland and is one of the global producers of self-adhesive labeling materials. It delivers responsible solutions and innovation for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood. Geographically, the company has operational footprints in Sweden, Finland, the Netherlands, and other regions.

UPM-Kymmene Oyj (UPM-Kymmene Oyj) Headlines

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