Software AG (Software AG) ROCE % : 8.77% (As of Sep. 2023)

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What is Software AG 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. Software AG's annualized ROCE % for the quarter that ended in Sep. 2023 was 8.77%.

Software AG ROCE % Historical Data

The historical data trend for Software AG'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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Software AG ROCE % Chart

Software AG Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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16.05

13.63

8.67

6.97

4.12

Software AG 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															-0.69	4.30	1.46	5.46	8.77

Software AG ROCE % Calculation

Software AG'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 )
	=	88.762	/	( ( (2510.045 - 554.668)	+	(2837.293 - 481.615) )	/ 2 )
	=	88.762	/	( (1955.377	+	2355.678)	/ 2 )
	=	88.762	/	2155.5275
	=	4.12 %

Software AG'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 )
	=	188.528	/	( ( (2812.22 - 557.197)	+	(2760.211 - 716.026) )	/ 2 )
	=	188.528	/	( ( 2255.023	+	2044.185 )	/ 2 )
	=	188.528	/	2149.604
	=	8.77 %

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

Software AG (OTCPK:STWRY) 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.

Software AG ROCE % Related Terms

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Software AG (Software AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Software AG (OTCPK:STWRY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SWDAF:USA 0RUL:UK SOW:Germany

Address

Uhlandstrasse 12, Darmstadt, HE, DEU, 64297

Website

https://www.softwareag.com

Software AG is a Germany-based provider of software solutions for the banking, communication and media, local and federal government, energy, insurance, transportation, retail, and manufacturing end markets. Its services include business process management, portfolio management, risk and compliance management, operational intelligence, and streaming analytics, many of which are delivered via cloud-based software applications. The firm has operations in Germany; the USA and other countries.