Equinix (BSP:EQIX34) ROCE % : 5.02% (As of Dec. 2023)

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What is Equinix 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. Equinix's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.02%.

Equinix ROCE % Historical Data

The historical data trend for Equinix'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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Equinix ROCE % Chart

Equinix Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.93

4.35

3.85

4.17

5.09

Equinix 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															3.88	5.65	4.49	5.39	5.02

Equinix ROCE % Calculation

Equinix'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 )
	=	7478.33	/	( ( (158991.966 - 9642.608)	+	(159982.017 - 15494.393) )	/ 2 )
	=	7478.33	/	( (149349.358	+	144487.624)	/ 2 )
	=	7478.33	/	146918.491
	=	5.09 %

Equinix'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 )
	=	7320.008	/	( ( (156480.744 - 9352.372)	+	(159982.017 - 15494.393) )	/ 2 )
	=	7320.008	/	( ( 147128.372	+	144487.624 )	/ 2 )
	=	7320.008	/	145807.998
	=	5.02 %

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

Equinix (BSP:EQIX34) 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.

Equinix ROCE % Related Terms

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Equinix (BSP:EQIX34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Equinix Inc (BSP:EQIX34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

EQIX:USA EQN2:Germany

Address

One Lagoon Drive, Redwood City, CA, USA, 94065

Website

https://www.equinix.com

Equinix operates 248 data centers in 71 markets worldwide. It generates 46% of total revenue in the Americas, 32% in Europe, the Middle East, and Africa, and 22% in Asia-Pacific. The firm has more than 10,000 customers, including 2,100 network providers, that are dispersed over five verticals: cloud and IT services, content providers, network and mobile services, financial services, and enterprise. About 70% of Equinix's revenue comes from renting space to tenants and related services, and more than 15% comes from interconnection. Equinix operates as a real estate investment trust.

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