Aon (BSP:A1ON34) ROCE %

: 23.65% (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. Aon's annualized ROCE % for the quarter that ended in Dec. 2023 was 23.65%.

Aon ROCE % Historical Data

The historical data trend for Aon'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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Aon Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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16.58

21.77

17.20

27.14

28.56

Aon 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															26.28	44.46	22.71	21.50	23.65

Aon ROCE % Calculation

Aon'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 )
	=	17898.969	/	( ( (171545.562 - 106513.092)	+	(166392.308 - 106085.57) )	/ 2 )
	=	17898.969	/	( (65032.47	+	60306.738)	/ 2 )
	=	17898.969	/	62669.604
	=	28.56 %

Aon'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 )
	=	14366.212	/	( ( (163530.234 - 102339.741)	+	(166392.308 - 106085.57) )	/ 2 )
	=	14366.212	/	( ( 61190.493	+	60306.738 )	/ 2 )
	=	14366.212	/	60748.6155
	=	23.65 %

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

Aon (BSP:A1ON34) 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.

Aon ROCE % Related Terms

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Aon (BSP:A1ON34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Aon PLC (BSP:A1ON34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AON:USA 4VK:Germany

Address

James Joyce Street, Metropolitan Building, Dublin 1, IRL, D01 K0Y8

Website

https://www.aon.com

Aon is a leading global provider of insurance and reinsurance brokerage and human resource solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries around the world.

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