KT (KT) ROCE % : 5.74% (As of Sep. 2023)

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What is KT 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. KT's annualized ROCE % for the quarter that ended in Sep. 2023 was 5.74%.

KT ROCE % Historical Data

The historical data trend for KT'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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KT ROCE % Chart

KT Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.32

5.48

8.37

7.30

5.49

KT Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															4.99	6.81	8.57	5.74	3.58

KT ROCE % Calculation

KT's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	1689.323	/	( ( (31387.572 - 8507.933)	+	(31687.528 - 8271.162) )	/ 2 )
	=	1689.323	/	( (22879.639	+	23416.366)	/ 2 )
	=	1689.323	/	23148.0025
	=	7.30 %

KT's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	1317.736	/	( ( (30646.364 - 7602.899)	+	(32958.741 - 10102.002) )	/ 2 )
	=	1317.736	/	( ( 23043.465	+	22856.739 )	/ 2 )
	=	1317.736	/	22950.102
	=	5.74 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

KT (NYSE:KT) 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.

KT ROCE % Related Terms

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KT (KT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » KT Corp (NYSE:KT) » Definitions » ROCE %

Traded in Other Exchanges

030200:Korea KTC:Germany

Address

90 Bulljeong-ro (206 Jungja-dong), Bundang-gu, Gyeonggi-do, Seongnam-si, KOR, 13606

Website

https://corp.kt.com

KT is South Korea's largest fixed-line telecom operator, with around 9.0 million fixed-line broadband customers and 9.4 million IPTV customers, and is the second-largest wireless operator with 25 million subscribers. Additionally, it has a number of nontelecom businesses, including real estate, payment processing, artificial intelligence, and IDC/cloud services, many of which are the focus of its growth strategy. The company was formed from the previously government-owned, monopoly telecom business and was listed in 1998. After selling its mobile business in 1994 (forming its mobile competitor, SK Telecom) KT created its own mobile operator in 1997.