Tesco (TSCDY) ROCE % : 10.66% (As of Feb. 2024)

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What is Tesco 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. Tesco's annualized ROCE % for the quarter that ended in Feb. 2024 was 10.66%.

Tesco ROCE % Historical Data

The historical data trend for Tesco'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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Tesco ROCE % Chart

Tesco Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROCE %

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4.96

4.32

8.46

5.02

11.57

Tesco Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
ROCE %	Get a 7-Day Free Trial															7.45	4.13	6.42	11.72	10.66

Tesco ROCE % Calculation

Tesco's annualized ROCE % for the fiscal year that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Feb. 2024 )		(A: Feb. 2023 )		(A: Feb. 2024 )
	=	3922.98	/	( ( (55714.976 - 21419.082)	+	(59392.677 - 25848.485) )	/ 2 )
	=	3922.98	/	( (34295.894	+	33544.192)	/ 2 )
	=	3922.98	/	33920.043
	=	11.57 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	3729.798	/	( ( (60508.259 - 24088.945)	+	(59392.677 - 25848.485) )	/ 2 )
	=	3729.798	/	( ( 36419.314	+	33544.192 )	/ 2 )
	=	3729.798	/	34981.753
	=	10.66 %

(1) Note: The EBIT data used here is two times the semi-annual (Feb. 2024) EBIT data.

Tesco (OTCPK:TSCDY) 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.

Tesco ROCE % Related Terms

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Tesco (TSCDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Tesco PLC (OTCPK:TSCDY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TSCDF:USA TSCOl:UK TSCO:UK TCO0:Germany TCO0:Germany TCO0:Germany TCO0:Germany

Address

Kestrel Way, Tesco House, Shire Park, Welwyn Garden, GBR, AL7 1GA

Website

https://www.tescoplc.com

Tesco is one of the largest food retailers in the world, operating thousands of stores in the United Kingdom, Ireland, and Europe. According to Kantar, Tesco is the market leader in the U.K. with a share of more than 27%, roughly double that of Asda or Sainsbury's. Tesco operates a core supermarket business in addition to convenience and neighborhood outlets. With a 35% digital market share in the U.K., the company holds a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivering industries with the landmark GBP 4 billion acquisition of Booker in 2018.