Telefonica (BUE:TEF) ROCE % : -7.18% (As of Dec. 2023)

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What is Telefonica 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. Telefonica's annualized ROCE % for the quarter that ended in Dec. 2023 was -7.18%.

Telefonica ROCE % Historical Data

The historical data trend for Telefonica'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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Telefonica ROCE % Chart

Telefonica Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.70

7.33

18.77

8.54

2.57

Telefonica 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															15.46	4.99	8.18	5.87	-7.18

Telefonica ROCE % Calculation

Telefonica'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 )
	=	606653.217	/	( ( (19471907.46 - 4102452.184)	+	(41069753.544 - 9211601.963) )	/ 2 )
	=	606653.217	/	( (15369455.276	+	31858151.581)	/ 2 )
	=	606653.217	/	23613803.4285
	=	2.57 %

Telefonica'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 )
	=	-2292763.36	/	( ( (40816421.517 - 8840252.704)	+	(41069753.544 - 9211601.963) )	/ 2 )
	=	-2292763.36	/	( ( 31976168.813	+	31858151.581 )	/ 2 )
	=	-2292763.36	/	31917160.197
	=	-7.18 %

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

Telefonica (BUE:TEF) 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.

Telefonica ROCE % Related Terms

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Telefonica (BUE:TEF) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica SA (BUE:TEF) » Definitions » ROCE %

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Address

Ronda de la Comunicacion, s/n, Central Building Auditorium, Floor 3, Telefonica District, Madrid, ESP, 28050

Website

https://www.telefonica.com

Telefonica operates mobile and fixed networks in Spain (where it is the incumbent telephone operator), the U.K., Germany, Brazil, and other Latin American countries like Colombia, Mexico, Argentina, and Chile, among others. The company derives more than 30% of its revenue from Spain, close to 20% from Germany and 20% from Brazil. Its U.K. operations are held through a joint venture with Virgin Media. For several years Telefonica has been simplifying its corporate structure by selling noncore assets.