Koninklijke Philips NV (Koninklijke Philips NV) ROCE % : -1.06% (As of Dec. 2023)

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What is Koninklijke Philips NV 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. Koninklijke Philips NV's annualized ROCE % for the quarter that ended in Dec. 2023 was -1.06%.

Koninklijke Philips NV ROCE % Historical Data

The historical data trend for Koninklijke Philips NV'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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Koninklijke Philips NV ROCE % Chart

Koninklijke Philips NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.61

7.28

2.99

-6.22

-1.02

Koninklijke Philips NV 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															1.21	-10.39	3.73	4.06	-1.06

Koninklijke Philips NV ROCE % Calculation

Koninklijke Philips NV'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 )
	=	-239.913	/	( ( (32508.475 - 8404.661)	+	(32067.612 - 9034.896) )	/ 2 )
	=	-239.913	/	( (24103.814	+	23032.716)	/ 2 )
	=	-239.913	/	23568.265
	=	-1.02 %

Koninklijke Philips NV'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 )
	=	-244.276	/	( ( (0 - 0)	+	(32067.612 - 9034.896) )	/ 1 )
	=	-244.276	/	( ( 0	+	23032.716 )	/ 1 )
	=	-244.276	/	23032.716
	=	-1.06 %

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

Koninklijke Philips NV (NYSE:PHG) 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.

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Koninklijke Philips NV (Koninklijke Philips NV) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Koninklijke Philips NV (NYSE:PHG) » Definitions » ROCE %

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Traded in Other Exchanges

RYLPF:USA PHIA:Netherlands PHIA:Italy 0A2M:UK PHIAa:UK 0LNG:UK PHIA:Germany PHI1:Germany PHI1:Germany PHI1:Germany PHIA:Germany PHI1:Germany PHGN34:Brazil PHIA:Austria

Address

Philips Center, Amstelplein 2, Amsterdam, NLD, 1096 BC

Website

https://www.philips.com

Philips is a diversified global healthcare company operating in three segments: diagnosis and treatment, connected care, and personal health. Around 50% of the company's revenue comes from the diagnosis and treatment segment, which features imaging systems, ultrasound equipment, image-guided therapy solutions and healthcare informatics. The connected care segment (around 30% of revenue) encompasses monitoring and analytics systems for hospitals and sleep and respiratory care devices, whereas the personal health business (remainder of revenue) includes electric toothbrushes and men's grooming and personal-care products.