Siemens (BOM:500550) ROCE %

: 19.88% (As of Dec. 2023)

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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. Siemens's annualized ROCE % for the quarter that ended in Dec. 2023 was 19.88%.

Siemens ROCE % Historical Data

The historical data trend for Siemens'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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Siemens Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

19.24

11.02

13.38

15.01

20.61

Siemens Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																20.62	20.78	19.27	22.36	19.88

Siemens ROCE % Calculation

Siemens'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 )
	=	26625	/	( ( (201090 - 79899)	+	(222650 - 85465) )	/ 2 )
	=	26625	/	( (121191	+	137185)	/ 2 )
	=	26625	/	129188
	=	20.61 %

Siemens'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 )
	=	27268	/	( ( (222650 - 85465)	+	(0 - 0) )	/ 1 )
	=	27268	/	( ( 137185	+	0 )	/ 1 )
	=	27268	/	137185
	=	19.88 %

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

Siemens (BOM:500550) 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.

Siemens ROCE % Related Terms

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Siemens (BOM:500550) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Siemens Ltd (BOM:500550) » Definitions » ROCE %

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SIEMENS:India

Address

Dr. Annie Besant Road, Birla Aurora, Level 21, Plot Number 1080, Worli, Mumbai, MH, IND, 400030

Website

https://www.siemens.co.in

Siemens Ltd produces systems and solutions for electrification, automation, and digitalization. The company produces energy-efficient technologies, solutions for power generation, and power transmission solutions. Siemens operates in many business divisions, including energy, Smart Infrastructure, Mobility, Digital Industries and other. The Energy division derives majority revenue. Sales to customers located in India account for the majority of total revenue.

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