Compagnie Financiere Richemont (FRA:RITN) ROCE %

: 19.75% (As of Sep. 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. Compagnie Financiere Richemont's annualized ROCE % for the quarter that ended in Sep. 2023 was 19.75%.

Compagnie Financiere Richemont ROCE % Historical Data

The historical data trend for Compagnie Financiere Richemont'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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Compagnie Financiere Richemont Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

16.20

6.00

6.55

11.04

17.38

Compagnie Financiere Richemont Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %																16.25	6.27	18.68	16.81	19.75

Compagnie Financiere Richemont ROCE % Calculation

Compagnie Financiere Richemont's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	5046	/	( ( (39986 - 10507)	+	(40887 - 12308) )	/ 2 )
	=	5046	/	( (29479	+	28579)	/ 2 )
	=	5046	/	29029
	=	17.38 %

Compagnie Financiere Richemont's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	5660	/	( ( (40887 - 12308)	+	(40884 - 12157) )	/ 2 )
	=	5660	/	( ( 28579	+	28727 )	/ 2 )
	=	5660	/	28653
	=	19.75 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

Compagnie Financiere Richemont (FRA:RITN) 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.

Compagnie Financiere Richemont ROCE % Related Terms

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Compagnie Financiere Richemont (FRA:RITN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Compagnie Financiere Richemont SA (FRA:RITN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CFR:South Africa CFRUY:USA CFRHF:USA CFRI:Mexico CFRz:UK 0QMU:UK RIT1:Germany CFR:Switzerland

Address

50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293

Website

https://www.richemont.com

Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up 85% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 67% of revenue and over 86% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc.

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