Digi International (STU:DGI) ROCE % : 4.33% (As of Mar. 2024)

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What is Digi International 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. Digi International's annualized ROCE % for the quarter that ended in Mar. 2024 was 4.33%.

Digi International ROCE % Historical Data

The historical data trend for Digi International'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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Digi International ROCE % Chart

Digi International Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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3.35

2.61

2.02

6.23

6.41

Digi International 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															6.36	6.56	7.23	1.25	4.33

Digi International ROCE % Calculation

Digi International's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	46.994	/	( ( (862.434 - 97.472)	+	(782.893 - 80.561) )	/ 2 )
	=	46.994	/	( (764.962	+	702.332)	/ 2 )
	=	46.994	/	733.647
	=	6.41 %

Digi International'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 )
	=	29.876	/	( ( (759.883 - 64.598)	+	(759.276 - 74.643) )	/ 2 )
	=	29.876	/	( ( 695.285	+	684.633 )	/ 2 )
	=	29.876	/	689.959
	=	4.33 %

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

Digi International (STU:DGI) 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.

Digi International ROCE % Related Terms

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Digi International (STU:DGI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Digi International Inc (STU:DGI) » Definitions » ROCE %

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Traded in Other Exchanges

DGII:USA

Address

9350 Excelsior Boulevard, Suite 700, Hopkins, MN, USA, 55343

Website

https://www.digi.com

Digi International Inc is a Minnesota corporation. The company provides business and mission-critical and Internet of Things (IoT) connectivity products and services. It has two segments: IoT Products and Services and IoT Solutions. The IoT Products and Services segment consists of distinct communications products and communication product development services. IoT Solutions segment offers wireless temperature and other environmental condition monitoring services as well as employee task management services. The company generates majority of its revenue from the IoT Products & Services segment. Geographically, the company generates majority of its revenue from its business in the United States and also has its presence in Europe, Middle East and Africa and Rest of the world.