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Smiths Group (LSE:SMIN) ROCE %

: 12.27% (As of Jan. 2024)
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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. Smiths Group's annualized ROCE % for the quarter that ended in Jan. 2024 was 12.27%.

Smiths Group ROCE % Historical Data

The historical data trend for Smiths Group'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.

Smiths Group Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.69 4.38 6.64 3.87 12.22

Smiths Group 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.08 -1.21 11.38 13.27 12.27

Smiths Group ROCE % Calculation

Smiths Group's annualized ROCE % for the fiscal year that ended in Jul. 2023 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jul. 2023 )  (A: Jul. 2022 )(A: Jul. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jul. 2023 )  (A: Jul. 2022 )(A: Jul. 2023 )
=445/( ( (5223 - 1399) + (4355 - 898) )/ 2 )
=445/( (3824+3457)/ 2 )
=445/3640.5
=12.22 %

Smiths Group'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 )
=408/( ( (4355 - 898) + (4065 - 869) )/ 2 )
=408/( ( 3457 + 3196 )/ 2 )
=408/3326.5
=12.27 %

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

* 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.

Smiths Group  (LSE:SMIN) 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.

Smiths Group ROCE % Related Terms

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Smiths Group (LSE:SMIN) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Smiths Group PLC (LSE:SMIN) » Definitions » ROCE %
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Traded in Other Exchanges
SMGZY:USA SMGKF:USA SMINl:UK QS2A:Germany
Address
11-12 St James’s Square, 4th Floor, London, GBR, SW1Y 4LB
Website
https://www.smiths.com
With its start as a London jeweler in the 19th century, Smiths Group has for most of its history operated as a company operating disparate but economically attractive businesses. Thematically, it runs businesses that manufacture niche products in security- or safety-sensitive industries. Today, the business is split across four divisions: mechanical seals, weapons detection, electrical connectors, and specialized hoses. The end customers for these products include airports, NASA, government security or defense departments, and hospitals.