American Tower (BSP:T1OW34) ROCE %

: 2.62% (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. American Tower's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.62%.

American Tower ROCE % Historical Data

The historical data trend for American Tower'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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American Tower Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.52

7.13

7.37

4.59

4.79

American Tower 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															-3.07	4.78	5.33	6.81	2.62

American Tower ROCE % Calculation

American Tower'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 )
	=	14304.966	/	( ( (352462.03 - 43599.24)	+	(323522.034 - 35520.12) )	/ 2 )
	=	14304.966	/	( (308862.79	+	288001.914)	/ 2 )
	=	14304.966	/	298432.352
	=	4.79 %

American Tower'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 )
	=	7563.332	/	( ( (324240.471 - 33922.449)	+	(323522.034 - 35520.12) )	/ 2 )
	=	7563.332	/	( ( 290318.022	+	288001.914 )	/ 2 )
	=	7563.332	/	289159.968
	=	2.62 %

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

American Tower (BSP:T1OW34) 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.

American Tower ROCE % Related Terms

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American Tower (BSP:T1OW34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Tower Corp (BSP:T1OW34) » Definitions » ROCE %

Comparable Companies

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AMT:USA AMT:Mexico 1AMT:Italy A0T:Germany AMTG:Austria

Address

116 Huntington Avenue, 11th Floor, Boston, MA, USA, 02116

Website

https://www.americantower.com

American Tower owns and operates more than 220,000 cell towers throughout the U.S., Asia, Latin America, Europe, and Africa. It also owns and/or operates 28 data centers in 10 U.S. markets after acquiring CoreSite. On its towers, the company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for roughly half of the company's total revenue in 2022. Outside the U.S., American Tower operates over 75,000 towers in India, almost 50,000 towers in Latin America (dominated by Brazil), 30,000 towers in Europe, and nearly 25,000 towers in Africa. American Tower operates as an REIT.

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