Hankook (Hankook) ROCE % : 12.21% (As of Mar. 2024)

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What is Hankook 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. Hankook's annualized ROCE % for the quarter that ended in Mar. 2024 was 12.21%.

Hankook ROCE % Historical Data

The historical data trend for Hankook'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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Hankook ROCE % Chart

Hankook Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.77

5.12

5.95

6.12

5.35

Hankook 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															3.72	4.38	9.95	3.15	12.21

Hankook ROCE % Calculation

Hankook'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 )
	=	168.621	/	( ( (3325.558 - 220.532)	+	(3557.97 - 354.143) )	/ 2 )
	=	168.621	/	( (3105.026	+	3203.827)	/ 2 )
	=	168.621	/	3154.4265
	=	5.35 %

Hankook'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 )
	=	391.428	/	( ( (3557.97 - 354.143)	+	(3603.943 - 394.383) )	/ 2 )
	=	391.428	/	( ( 3203.827	+	3209.56 )	/ 2 )
	=	391.428	/	3206.6935
	=	12.21 %

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

Hankook (OTCPK:HKOKF) 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.

Hankook ROCE % Related Terms

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Hankook (Hankook) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Hankook & Co (OTCPK:HKOKF) » Definitions » ROCE %

Traded in Other Exchanges

000240:Korea

Address

133 Teheran-ro, Gangnam-gu, Seoul, KOR

Website

https://www.hankookandcompany.com

Hankook & Co formerly Hankook Technology Group Co Ltd manufactures and sells a variety of tires under the Hankook, Laufenn, Aurora, and Kingstar brand names. The firm's tires are used for passenger cars, suburban utility vehicles and light trucks, commercial trucks and buses, and race cars. Hankook Tire sells tires directly to automobile manufacturers and for replacement and aftermarket use. The majority of sales come from replacement and aftermarket use. More revenue comes from Europe than any other geography, followed by the Americas region.

Hankook (Hankook) Headlines

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