Shanda Games (Shanda Games) ROCE % : 65.75% (As of Dec. 2014)

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What is Shanda Games 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. Shanda Games's annualized ROCE % for the quarter that ended in Dec. 2014 was 65.75%.

Shanda Games ROCE % Historical Data

The historical data trend for Shanda Games'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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Shanda Games ROCE % Chart

Shanda Games Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROCE %

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42.56

43.10

58.25

67.55

65.75

Shanda Games Semi-Annual Data
	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
ROCE %	Get a 7-Day Free Trial			42.56	43.10	58.25	67.55	65.75

Shanda Games ROCE % Calculation

Shanda Games's annualized ROCE % for the fiscal year that ended in Dec. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2014 )		(A: Dec. 2013 )		(A: Dec. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2014 )		(A: Dec. 2013 )		(A: Dec. 2014 )
	=	213.044	/	( ( (844.189 - 614.666)	+	(589.384 - 170.871) )	/ 2 )
	=	213.044	/	( (229.523	+	418.513)	/ 2 )
	=	213.044	/	324.018
	=	65.75 %

Shanda Games's ROCE % of for the quarter that ended in Dec. 2014 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2014 )		(Q: Dec. 2013 )		(Q: Dec. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2014 )		(Q: Dec. 2013 )		(Q: Dec. 2014 )
	=	213.044	/	( ( (844.189 - 614.666)	+	(589.384 - 170.871) )	/ 2 )
	=	213.044	/	( ( 229.523	+	418.513 )	/ 2 )
	=	213.044	/	324.018
	=	65.75 %

(1) Note: The EBIT data used here is one times the annual (Dec. 2014) EBIT data.

Shanda Games (NAS:GAME) 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.

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Shanda Games (Shanda Games) Business Description

Industry

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Address

Website

http://www.shandagames.com

Shanda Games Ltd was incorporated in the Cayman Islands on June 12, 2008. The Company is an online game company in China in terms of the size, diversity of its game portfolio, game revenues and game player base. It completed its initial public offering on September 30, 2009. It develop and source a broad array of game content through multiple channels, including in-house development, licensing, investment, acquisition, joint development and joint operation. As of March 31, 2015, it operated 35 MMO games and 29 mobile games in China and certain overseas markets. The games operated by the Company are: Mir II, BNB, Woool, Legend of Immortals, Age of Wushu, among others. It competes with other online game developers and operators in China, including Tencent Holdings Limited, NetEase, Inc., Changyou.com Limited, Perfect World Co., Ltd., Giant Interactive, Kingsoft, KongZhong Corporation, NetDragon Websoft, Inc. and The9 Limited.