Renova Energia (BSP:RNEW11) ROCE %

: 34.80% (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. Renova Energia's annualized ROCE % for the quarter that ended in Dec. 2023 was 34.80%.

Renova Energia ROCE % Historical Data

The historical data trend for Renova Energia'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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Renova Energia Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

20.69

20.85

49.76

7.50

Renova Energia Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																153.62	-1.30	-0.69	-1.60	34.80

Renova Energia ROCE % Calculation

Renova Energia'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 )
	=	191.733	/	( ( (2814.419 - 341.621)	+	(3076.138 - 437.914) )	/ 2 )
	=	191.733	/	( (2472.798	+	2638.224)	/ 2 )
	=	191.733	/	2555.511
	=	7.50 %

Renova Energia'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 )
	=	854.088	/	( ( (2732.437 - 462.239)	+	(3076.138 - 437.914) )	/ 2 )
	=	854.088	/	( ( 2270.198	+	2638.224 )	/ 2 )
	=	854.088	/	2454.211
	=	34.80 %

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

Renova Energia (BSP:RNEW11) 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.

Renova Energia ROCE % Related Terms

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Renova Energia (BSP:RNEW11) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Renova Energia SA (BSP:RNEW11) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RNEW4:Brazil RNEW3:Brazil

Address

Av. Roque Petroni Júnior, Suite 999, 4th Floor, Sao Paulo, SP, BRA, 4571011

Website

https://www.renovaenergia.com.br

Renova Energia SA is a Brazilian energy company generating electric power from renewable sources, focusing on wind farms, small hydroelectric plants, and solar energy. The company is responsible for prospecting, developing, and implementing projects to generate power. The company is also involved in the power trading business. A majority of revenue is derived from a combination of wind and power trading, with a significantly smaller portion of revenue coming from both small hydroelectric plants and solar power. Renova generates the vast majority of its revenue in Brazil.

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