Celestica (Celestica) ROCE % : 19.79% (As of Mar. 2024)

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What is Celestica 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. Celestica's annualized ROCE % for the quarter that ended in Mar. 2024 was 19.79%.

Celestica ROCE % Historical Data

The historical data trend for Celestica'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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Celestica ROCE % Chart

Celestica Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.11

6.14

7.45

10.56

14.61

Celestica 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															9.29	13.75	18.02	17.83	19.79

Celestica ROCE % Calculation

Celestica'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 )
	=	383.2	/	( ( (5628 - 3055.2)	+	(5890.7 - 3219.5) )	/ 2 )
	=	383.2	/	( (2572.8	+	2671.2)	/ 2 )
	=	383.2	/	2622
	=	14.61 %

Celestica'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 )
	=	528.4	/	( ( (5890.7 - 3219.5)	+	(5717.1 - 3046.9) )	/ 2 )
	=	528.4	/	( ( 2671.2	+	2670.2 )	/ 2 )
	=	528.4	/	2670.7
	=	19.79 %

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

Celestica (NYSE:CLS) 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.

Celestica ROCE % Related Terms

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Celestica (Celestica) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Celestica Inc (NYSE:CLS) » Definitions » ROCE %

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Address

5140 Yonge Street, Suite 1900, Toronto, ON, CAN, M2N 6L7

Website

https://www.celestica.com

Celestica Inc offers supply chain solutions. The company has two operating and reportable segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of the ATS end market and is comprised of the Aerospace and Defense, Industrial, health tech, and Capital Equipment businesses. Its Capital Equipment business is comprised of the semiconductor, display, and robotics equipment businesses, and the CCS segment consists of Communications and Enterprise end markets, Enterprise end market is comprised of its servers and storage businesses. The company generates a majority of its revenue from the Connectivity & Cloud Solutions segment.