Visa (BSP:VISA34) ROCE %

: 36.45% (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. Visa's annualized ROCE % for the quarter that ended in Dec. 2023 was 36.45%.

Visa ROCE % Historical Data

The historical data trend for Visa'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.

* Premium members only.

Visa Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

26.37

25.65

24.54

28.24

31.87

Visa Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																31.31	32.32	30.31	34.68	36.45

Visa ROCE % Calculation

Visa's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	107075.955	/	( ( (448333.044 - 109344.791)	+	(446947.411 - 114074.093) )	/ 2 )
	=	107075.955	/	( (338988.253	+	332873.318)	/ 2 )
	=	107075.955	/	335930.7855
	=	31.87 %

Visa'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 )
	=	122083.416	/	( ( (446947.411 - 114074.093)	+	(447885.818 - 110902.073) )	/ 2 )
	=	122083.416	/	( ( 332873.318	+	336983.745 )	/ 2 )
	=	122083.416	/	334928.5315
	=	36.45 %

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

Visa (BSP:VISA34) 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.

Visa ROCE % Related Terms

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Visa (BSP:VISA34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Visa Inc (BSP:VISA34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

V:USA V:Peru V:Mexico 1V:Italy 3V64d:UK 0QZ0:UK 3V64:Germany V:Chile VISA:Canada VISA:Austria

Address

P.O. Box 8999, San Francisco, CA, USA, 94128-8999

Website

https://www.usa.visa.com

Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

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