Magic Software Enterprises (Magic Software Enterprises) ROCE % : 13.86% (As of Dec. 2023)

View and export this data going back to 1991. Start your Free Trial

What is Magic Software Enterprises 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. Magic Software Enterprises's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.86%.

Magic Software Enterprises ROCE % Historical Data

The historical data trend for Magic Software Enterprises'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.

* Premium members only.

Magic Software Enterprises ROCE % Chart

Magic Software Enterprises Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

10.15

10.86

13.75

17.69

15.53

Magic Software Enterprises 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															17.34	17.43	16.84	14.23	13.86

Magic Software Enterprises ROCE % Calculation

Magic Software Enterprises'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 )
	=	56.818	/	( ( (505.141 - 156.053)	+	(524.42 - 141.983) )	/ 2 )
	=	56.818	/	( (349.088	+	382.437)	/ 2 )
	=	56.818	/	365.7625
	=	15.53 %

Magic Software Enterprises'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	51.796	/	( ( (502.224 - 137.451)	+	(524.42 - 141.983) )	/ 2 )
	=	51.796	/	( ( 364.773	+	382.437 )	/ 2 )
	=	51.796	/	373.605
	=	13.86 %

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

Magic Software Enterprises (NAS:MGIC) 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.

Magic Software Enterprises ROCE % Related Terms

Thank you for viewing the detailed overview of Magic Software Enterprises's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Magic Software Enterprises (Magic Software Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Magic Software Enterprises Ltd (NAS:MGIC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MGIC:Israel MGK:Germany MGK:Germany

Address

Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501

Website

https://www.magicsoftware.com

Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.