Next (LSE:NXT) ROCE % : 41.30% (As of Jan. 2024)

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What is Next 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. Next's annualized ROCE % for the quarter that ended in Jan. 2024 was 41.30%.

Next ROCE % Historical Data

The historical data trend for Next'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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Next ROCE % Chart

Next Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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32.70

16.85

34.10

33.45

34.65

Next Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
ROCE %	Get a 7-Day Free Trial															37.16	31.96	36.52	32.18	41.30

Next ROCE % Calculation

Next's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	1103.3	/	( ( (3983.8 - 1093.3)	+	(4724.3 - 1245.7) )	/ 2 )
	=	1103.3	/	( (2890.5	+	3478.6)	/ 2 )
	=	1103.3	/	3184.55
	=	34.65 %

Next's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Jul. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Jul. 2023 )		(Q: Jan. 2024 )
	=	1293.4	/	( ( (3982.6 - 1198.3)	+	(4724.3 - 1245.7) )	/ 2 )
	=	1293.4	/	( ( 2784.3	+	3478.6 )	/ 2 )
	=	1293.4	/	3131.45
	=	41.30 %

(1) Note: The EBIT data used here is two times the semi-annual (Jan. 2024) EBIT data.

Next (LSE:NXT) 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.

Next ROCE % Related Terms

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Next (LSE:NXT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Next PLC (LSE:NXT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NXGPY:USA NXTl:UK NXG:Germany

Address

Desford Road, Enderby, Leicester, GBR, LE19 4AT

Website

https://www.nextplc.co.uk

Next PLC is a retailer that sells clothing, footwear, accessories, and home products. most of the company's offerings consist of its own Next-branded products. Almost all of Next's revenue comes from its hundreds of stores in the United Kingdom and through its online and catalog business that reaches dozens of other countries. most of the company's remaining sales are through retail stores outside of the United Kingdom that it franchises. Its segments include NEXT Online, NEXT Finance, NEXT Retail, NEXT International Retail, Sourcing and other, and Property Management. Roughly 90% of the company's revenue comes from customers in the United Kingdom.