Fanhua (Fanhua) ROCE % : 24.51% (As of Sep. 2023)

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What is Fanhua 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. Fanhua's annualized ROCE % for the quarter that ended in Sep. 2023 was 24.51%.

Fanhua ROCE % Historical Data

The historical data trend for Fanhua'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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Fanhua ROCE % Chart

Fanhua Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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11.80

17.04

13.50

13.63

7.19

Fanhua Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															8.11	10.90	10.29	15.46	24.51

Fanhua ROCE % Calculation

Fanhua'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 )
	=	24.194	/	( ( (509.023 - 142.665)	+	(443.151 - 136.549) )	/ 2 )
	=	24.194	/	( (366.358	+	306.602)	/ 2 )
	=	24.194	/	336.48
	=	7.19 %

Fanhua'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: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	98.536	/	( ( (580.075 - 187.766)	+	(548.85 - 137.148) )	/ 2 )
	=	98.536	/	( ( 392.309	+	411.702 )	/ 2 )
	=	98.536	/	402.0055
	=	24.51 %

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

Fanhua (NAS:FANH) 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.

Fanhua ROCE % Related Terms

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Fanhua (Fanhua) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Fanhua Inc (NAS:FANH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

4CIA:Germany

Address

No.15 West Zhujiang Road, 60th Floor, Pearl River Tower, Guangdong, Guangzhou, CHN, 510623

Website

https://www.fanhuaholdings.com

Fanhua Inc is an independent insurance intermediary company operating in China. The company sells insurance product offerings from various insurance companies through their online platforms Lan Zhanggui, Baowang, and eHuzhu. The company's segments include the insurance agency segment, which mainly consists of providing agency services for distributing life insurance products and P&C insurance products on behalf of insurance companies; and the claims adjusting segment, which consists of providing pre-underwriting survey services, claim adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The insurance agency segment contributes to the majority of the revenue. The company generates all of its revenues from China.