Ecopetrol (BSP:E1CO34) ROCE %

: 22.56% (As of Sep. 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. Ecopetrol's annualized ROCE % for the quarter that ended in Sep. 2023 was 22.56%.

Ecopetrol ROCE % Historical Data

The historical data trend for Ecopetrol'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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Ecopetrol Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

20.16

7.64

18.40

23.60

19.78

Ecopetrol Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
ROCE %																28.81	20.35	24.45	22.56	-

Ecopetrol ROCE % Calculation

Ecopetrol's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	67841.672	/	( ( (347837.787 - 43401.388)	+	(333016.197 - 62450.168) )	/ 2 )
	=	67841.672	/	( (304436.399	+	270566.029)	/ 2 )
	=	67841.672	/	287501.214
	=	23.60 %

Ecopetrol's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	57565.876	/	( ( (336580.69 - 81371.804)	+	(0 - 0) )	/ 1 )
	=	57565.876	/	( ( 255208.886	+	0 )	/ 1 )
	=	57565.876	/	255208.886
	=	22.56 %

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

Ecopetrol (BSP:E1CO34) 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.

Ecopetrol ROCE % Related Terms

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Ecopetrol (BSP:E1CO34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Ecopetrol SA (BSP:E1CO34) » Definitions » ROCE %

Traded in Other Exchanges

EC:USA ECHA:Germany ECOPETROL:Columbia

Address

Carrera 13 No. 36 - 24, Main Building, Bogota, COL

Website

https://www.ecopetrol.com.co

Ecopetrol SA is a vertically integrated oil company with operations in Latin America and the United States Gulf Coast. Based out of Colombia, the company explores, develops, and conducts production activities in various countries. Ecopetrol works as the primary operator or partner in a joint venture, in a host of assets held onshore and offshore. Along with production, the company refines and markets crude oils and byproducts produced from its fields. Crude products are moved by Ecopetrol through a series of pipelines throughout Colombia, along with a network of third-party production centers and facilities.

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