Alfa Laval AB (Alfa Laval AB) ROCE % : 17.82% (As of Mar. 2024)

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What is Alfa Laval AB 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. Alfa Laval AB's annualized ROCE % for the quarter that ended in Mar. 2024 was 17.82%.

Alfa Laval AB ROCE % Historical Data

The historical data trend for Alfa Laval AB'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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Alfa Laval AB ROCE % Chart

Alfa Laval AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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17.98

12.60

14.41

12.79

17.18

Alfa Laval AB 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															16.50	16.68	18.73	17.28	17.82

Alfa Laval AB ROCE % Calculation

Alfa Laval AB'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 )
	=	892.606	/	( ( (7828.965 - 2559.164)	+	(8022.149 - 2900.873) )	/ 2 )
	=	892.606	/	( (5269.801	+	5121.276)	/ 2 )
	=	892.606	/	5195.5385
	=	17.18 %

Alfa Laval AB'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 )
	=	933.6	/	( ( (8022.149 - 2900.873)	+	(8257.374 - 2900.694) )	/ 2 )
	=	933.6	/	( ( 5121.276	+	5356.68 )	/ 2 )
	=	933.6	/	5238.978
	=	17.82 %

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

Alfa Laval AB (OTCPK:ALFVF) 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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Alfa Laval AB (Alfa Laval AB) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Alfa Laval AB (OTCPK:ALFVF) » Definitions » ROCE %

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ALFVY:USA ALFA:Sweden ALFAs:UK 0NNF:UK AA9:Germany

Address

Rudeboksvagen 1, P.O. Box 73, Lund, SWE, SE-221 00

Website

https://www.alfalaval.com

Alfa Laval is a leading manufacturer of highly engineered equipment, primarily in the areas of separation, heat transfer, and fluid handling used by a diverse range of customers spanning the food, water, energy, and marine industry verticals. These products play a key role in a number of industrial processes, and Alfa Laval enjoys a leading position in all three areas. Alfa Laval's history stretches back 140 years to when its first separator was developed. The company is listed on the Stockholm stock exchange.