Activision Blizzard (LTS:0H8X) ROCE % : 12.07% (As of Jun. 2023)

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What is Activision Blizzard 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. Activision Blizzard's annualized ROCE % for the quarter that ended in Jun. 2023 was 12.07%.

Activision Blizzard ROCE % Historical Data

The historical data trend for Activision Blizzard'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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Activision Blizzard ROCE % Chart

Activision Blizzard Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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13.33

10.71

14.70

15.34

7.97

Activision Blizzard Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROCE %	Get a 7-Day Free Trial															6.09	9.10	8.23	15.24	12.07

Activision Blizzard ROCE % Calculation

Activision Blizzard's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	1852	/	( ( (25056 - 2411)	+	(27383 - 3555) )	/ 2 )
	=	1852	/	( (22645	+	23828)	/ 2 )
	=	1852	/	23236.5
	=	7.97 %

Activision Blizzard's ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	3004	/	( ( (27393 - 2817)	+	(28518 - 3322) )	/ 2 )
	=	3004	/	( ( 24576	+	25196 )	/ 2 )
	=	3004	/	24886
	=	12.07 %

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

Activision Blizzard (LTS:0H8X) 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.

Activision Blizzard ROCE % Related Terms

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Activision Blizzard (LTS:0H8X) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Activision Blizzard Inc (LTS:0H8X) » Definitions » ROCE %

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Address

2701 Olympic Boulevard, Building B, Santa Monica, CA, USA, 90404

Website

https://www.activisionblizzard.com

Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.

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