Thomson Reuters (TSX:TRI) ROCE % : 11.99% (As of Dec. 2023)

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What is Thomson Reuters 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. Thomson Reuters's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.99%.

Thomson Reuters ROCE % Historical Data

The historical data trend for Thomson Reuters'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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Thomson Reuters ROCE % Chart

Thomson Reuters Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.21

13.23

7.21

12.97

13.70

Thomson Reuters 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															5.05	9.84	17.76	15.09	11.99

Thomson Reuters ROCE % Calculation

Thomson Reuters'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 )
	=	2985.06	/	( ( (29494.393 - 6644.423)	+	(25066.454 - 4337.393) )	/ 2 )
	=	2985.06	/	( (22849.97	+	20729.061)	/ 2 )
	=	2985.06	/	21789.5155
	=	13.70 %

Thomson Reuters'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 )
	=	2500.744	/	( ( (26181.132 - 5206.729)	+	(25066.454 - 4337.393) )	/ 2 )
	=	2500.744	/	( ( 20974.403	+	20729.061 )	/ 2 )
	=	2500.744	/	20851.732
	=	11.99 %

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

Thomson Reuters (TSX:TRI) 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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Thomson Reuters (TSX:TRI) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Thomson Reuters Corp (TSX:TRI) » Definitions » ROCE %

Comparable Companies

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TRI:USA TOC:Germany TRI.PR.B.PFD:Canada

Address

333 Bay Street, Suite 300, Toronto, ON, CAN, M5H 2R2

Website

https://www.thomsonreuters.com

Thomson Reuters is the result of the $17.6 billion megamerger of Canada's Thomson and the United Kingdom's Reuters Group in 2008. In 2021, Thomson Reuters completed the sale of Refinitiv to LSE Group. Thomson Reuters' three largest segments are its legal professionals, Tax and accounting, and corporates segments. Legal professionals is about 42% of the firm's revenue and 47% of the firm's adjusted EBITDA. Tax and accounting makes up about 20%-25% of the firm's revenue and EBITDA. Corporates, which consists of legal professionals and tax and accounting products sold to corporations, also makes up about 20%-25% of the firm's revenue and EBITDA. Thomson Reuters' smaller segments include its Reuters news business and global print business.