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Nokian Tyres (Nokian Tyres) ROCE % : 8.71% (As of Dec. 2023)


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What is Nokian Tyres 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. Nokian Tyres's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.71%.

Nokian Tyres ROCE % Historical Data

The historical data trend for Nokian Tyres'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.

Nokian Tyres ROCE % Chart

Nokian Tyres Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.20 6.23 13.76 1.00 2.26

Nokian Tyres Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -9.54 -4.63 2.18 1.79 8.71

Nokian Tyres ROCE % Calculation

Nokian Tyres's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=42.857/( ( (2340.784 - 590.254) + (2535.66 - 496.074) )/ 2 )
=42.857/( (1750.53+2039.586)/ 2 )
=42.857/1895.058
=2.26 %

Nokian Tyres's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2023 )  (Q: Sep. 2023 )(Q: Dec. 2023 )
=175.792/( ( (2434.578 - 438.314) + (2535.66 - 496.074) )/ 2 )
=175.792/( ( 1996.264 + 2039.586 )/ 2 )
=175.792/2017.925
=8.71 %

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

Nokian Tyres  (OTCPK:NKRKY) 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.

Nokian Tyres ROCE % Related Terms

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Nokian Tyres (Nokian Tyres) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nokian Tyres PLC (OTCPK:NKRKY) » Definitions » ROCE %
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Traded in Other Exchanges
NKRKF:USA 1TYRES:Italy 0FFY:UK TYRES:Finland NRE:Germany
Address
Pirkkalaistie 7, P.O. Box 20, Nokia, FIN, 37101
Website
https://www.nokiantyres.com
Nokian Tyres plc develops and manufactures rubber tires under the Nokian Tyres brand name for passenger cars, vans, trucks and heavy machinery. The company sells tires to wholesale distributors and through company-owned retail stores, which are operated under the Vianor brand name. The firm organizes itself into three segments based on product and distribution type: Passenger Car Tyres, Heavy Tyres, and Vianor. The passenger car tires segment generates the majority of revenue.