Li Ning Co (Li Ning Co) ROCE % : 11.30% (As of Dec. 2023)

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What is Li Ning Co 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. Li Ning Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.30%.

Li Ning Co ROCE % Historical Data

The historical data trend for Li Ning Co'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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Li Ning Co ROCE % Chart

Li Ning Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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27.38

27.27

33.81

21.59

16.36

Li Ning Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															32.24	24.91	19.92	20.90	11.30

Li Ning Co ROCE % Calculation

Li Ning Co'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 )
	=	618.563	/	( ( (4826.157 - 1038.604)	+	(4790.875 - 1017.965) )	/ 2 )
	=	618.563	/	( (3787.553	+	3772.91)	/ 2 )
	=	618.563	/	3780.2315
	=	16.36 %

Li Ning Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	432.634	/	( ( (4787.159 - 899.654)	+	(4790.875 - 1017.965) )	/ 2 )
	=	432.634	/	( ( 3887.505	+	3772.91 )	/ 2 )
	=	432.634	/	3830.2075
	=	11.30 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Li Ning Co (OTCPK:LNNGY) 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.

Li Ning Co ROCE % Related Terms

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Li Ning Co (Li Ning Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Li Ning Co Ltd (OTCPK:LNNGY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LNNGF:USA 02331:Hong Kong LNLB:Germany

Address

No. 8 Xing Guang 5th Street, Opto-Mechatronics Industrial Park, Zhongguancun Science and Technology Area, Tongzhou District, Beijing, CHN, 101111

Website

https://www.lining.com

Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2021, the company had 7,137 stores in China, of which 1,232 were directly operated, and 5,905 were franchised.

Li Ning Co (Li Ning Co) Headlines

From GuruFocus

Matthews China Fund Comments on Li Ning Co Ltd

By Vera Yuan Vera Yuan • 10-20-2014