TELUS (TSX:T) ROCE % : 6.21% (As of Dec. 2023)

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What is TELUS 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. TELUS's annualized ROCE % for the quarter that ended in Dec. 2023 was 6.21%.

TELUS ROCE % Historical Data

The historical data trend for TELUS'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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TELUS ROCE % Chart

TELUS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.74

7.04

8.00

7.46

5.15

TELUS 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															5.45	4.97	4.91	4.31	6.21

TELUS ROCE % Calculation

TELUS'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 )
	=	2382	/	( ( (54069 - 8286)	+	(56136 - 9478) )	/ 2 )
	=	2382	/	( (45783	+	46658)	/ 2 )
	=	2382	/	46220.5
	=	5.15 %

TELUS'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 )
	=	2896	/	( ( (56460 - 9841)	+	(56136 - 9478) )	/ 2 )
	=	2896	/	( ( 46619	+	46658 )	/ 2 )
	=	2896	/	46638.5
	=	6.21 %

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

TELUS (TSX:T) 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.

TELUS ROCE % Related Terms

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TELUS (TSX:T) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » TELUS Corp (TSX:T) » Definitions » ROCE %

Comparable Companies

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TU:USA BCZ:Germany

Address

510 West Georgia Street, 23rd Floor, Vancouver, BC, CAN, V6B 0M3

Website

https://www.telus.com

Telus is one of the Big Three wireless service providers in Canada, with its nearly 10 million mobile phone subscribers nationwide constituting about 30% of the total market. It is the incumbent local exchange carrier in the western Canadian provinces of British Columbia and Alberta, where it provides internet, television, and landline phone services. It also has a small wireline presence in eastern Quebec. Mostly because of recent acquisitions, more than 20% of Telus' sales now come from nontelecom businesses, most notably in the international business services, health, security, and agriculture industries. The firm has a 55% economic stake in Telus International.