Hennes & Mauritz AB (Hennes & Mauritz AB) ROCE % : 7.53% (As of Feb. 2024)

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What is Hennes & Mauritz 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. Hennes & Mauritz AB's annualized ROCE % for the quarter that ended in Feb. 2024 was 7.53%.

Hennes & Mauritz AB ROCE % Historical Data

The historical data trend for Hennes & Mauritz 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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Hennes & Mauritz AB ROCE % Chart

Hennes & Mauritz AB Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

ROCE %

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23.33

3.65

12.94

5.68

13.37

Hennes & Mauritz AB Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															-0.97	17.05	17.06	21.34	7.53

Hennes & Mauritz AB ROCE % Calculation

Hennes & Mauritz AB's annualized ROCE % for the fiscal year that ended in Nov. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2023 )		(A: Nov. 2022 )		(A: Nov. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2023 )		(A: Nov. 2022 )		(A: Nov. 2023 )
	=	1420.23	/	( ( (17007.474 - 6384.062)	+	(16989.99 - 6366.525) )	/ 2 )
	=	1420.23	/	( (10623.412	+	10623.465)	/ 2 )
	=	1420.23	/	10623.4385
	=	13.37 %

Hennes & Mauritz AB's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	802.18	/	( ( (16989.99 - 6366.525)	+	(16665.74 - 5968.964) )	/ 2 )
	=	802.18	/	( ( 10623.465	+	10696.776 )	/ 2 )
	=	802.18	/	10660.1205
	=	7.53 %

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

Hennes & Mauritz AB (OTCPK:HNNMY) 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.

Hennes & Mauritz AB ROCE % Related Terms

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Hennes & Mauritz AB (Hennes & Mauritz AB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Hennes & Mauritz AB (OTCPK:HNNMY) » Definitions » ROCE %

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Traded in Other Exchanges

HMRZF:USA HM B:Sweden HMBs:UK 0HBP:UK HMSA:Germany HMSB:Germany HMSB:Germany HMSB:Germany HMSB:Germany

Address

Master Samuelsgatan 46A, Stockholm, SWE, SE-106 38

Website

https://www.hmgroup.com

Hennes & Mauritz is a global multibrand fashion conglomerate that was founded in 1947. Its flagship H&M brand accounts for most of revenue, but the newer brands (COS, &Other Stories, Monki, Weekday, and newly launched Arket) are growing a bit faster. H&M commands low-single-digit market share in a fragmented global apparel market. Just under 70% of revenue is generated in Europe and Africa, 14% in Asia and Oceania, and 23% in North and South America. The company operates around 4,400 stores globally of which 3,947 are H&M-brand stores.

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