ABB (ABLZF) ROCE % : 22.31% (As of Mar. 2024)

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What is ABB 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. ABB's annualized ROCE % for the quarter that ended in Mar. 2024 was 22.31%.

ABB ROCE % Historical Data

The historical data trend for ABB'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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ABB ROCE % Chart

ABB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.01

4.20

23.57

14.90

22.18

ABB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															22.28	24.48	23.47	20.37	22.31

ABB ROCE % Calculation

ABB'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 )
	=	5053	/	( ( (39148 - 16529)	+	(40940 - 18004) )	/ 2 )
	=	5053	/	( (22619	+	22936)	/ 2 )
	=	5053	/	22777.5
	=	22.18 %

ABB's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	5160	/	( ( (40940 - 18004)	+	(41112 - 17782) )	/ 2 )
	=	5160	/	( ( 22936	+	23330 )	/ 2 )
	=	5160	/	23133
	=	22.31 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

ABB (OTCPK:ABLZF) 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.

ABB ROCE % Related Terms

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ABB (ABLZF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ABB Ltd (OTCPK:ABLZF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ABBNY:USA ABB:Sweden ABBNz:UK 0NX2:UK ABJA:Germany ABBNE:Switzerland ABBN:Switzerland

Address

Affolternstrasse 44, Zurich, CHE, 8050

Website

https://www.abb.com

ABB is a supplier of electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation that are sold via approximately 20 business divisions. ABB is the number one or two supplier in two thirds of its product segments.