POSCO Holdings (BSP:P1KX34) ROCE %

: 16.23% (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. POSCO Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.23%.

POSCO Holdings ROCE % Historical Data

The historical data trend for POSCO Holdings'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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POSCO Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

6.39

4.79

14.83

5.85

8.51

POSCO Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																-6.37	6.35	6.18	5.31	16.23

POSCO Holdings ROCE % Calculation

POSCO Holdings'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 )
	=	25686.686	/	( ( (401533.383 - 95027.773)	+	(379189.15 - 82120.145) )	/ 2 )
	=	25686.686	/	( (306505.61	+	297069.005)	/ 2 )
	=	25686.686	/	301787.3075
	=	8.51 %

POSCO Holdings'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 )
	=	48416.688	/	( ( (381149.856 - 81656.993)	+	(379189.15 - 82120.145) )	/ 2 )
	=	48416.688	/	( ( 299492.863	+	297069.005 )	/ 2 )
	=	48416.688	/	298280.934
	=	16.23 %

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

POSCO Holdings (BSP:P1KX34) 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.

POSCO Holdings ROCE % Related Terms

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POSCO Holdings (BSP:P1KX34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » POSCO Holdings Inc (BSP:P1KX34) » Definitions » ROCE %

Traded in Other Exchanges

PKX:USA 005490:Korea PKX:Germany

Address

POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, KOR, 06194

Website

https://www.posco.co.kr

POSCO Holdings Inc is a holding company and operates through its subsidiaries. The company's operating segments are 1) Steel Segment includes the production and sale of steel products. 2) Green Infrastructure Business includes the provision of infrastructure and related services. The segment is divided into three operations, Trading Segment consists trading and natural resources development activities. Construction Segment consists planning, designing and construction of industrial plants, civil engineering projects and buildings. The energy and Other Segment consists power generation and information technology and operational technology services. 3) Green Materials and Energy Segment include manufacturing and sale of energy-related and other industrial materials, 4) Others Segment.

POSCO Holdings (BSP:P1KX34) Headlines

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