Danone (WBO:BN) ROCE % : 2.92% (As of Dec. 2023)

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What is Danone 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. Danone's annualized ROCE % for the quarter that ended in Dec. 2023 was 2.92%.

Danone ROCE % Historical Data

The historical data trend for Danone'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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Danone ROCE % Chart

Danone Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.56

8.55

6.94

6.34

6.89

Danone Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															8.41	8.09	4.33	10.81	2.92

Danone ROCE % Calculation

Danone'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 )
	=	2199	/	( ( (45281 - 12130)	+	(44486 - 13828) )	/ 2 )
	=	2199	/	( (33151	+	30658)	/ 2 )
	=	2199	/	31904.5
	=	6.89 %

Danone'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: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	906	/	( ( (45444 - 13999)	+	(44486 - 13828) )	/ 2 )
	=	906	/	( ( 31445	+	30658 )	/ 2 )
	=	906	/	31051.5
	=	2.92 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Danone (WBO:BN) 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.

Danone ROCE % Related Terms

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Danone (WBO:BN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Danone SA (WBO:BN) » Definitions » ROCE %

Comparable Companies

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GPDNF:USA DANOY:USA BNN:Mexico BNp:UK 0KFX:UK BN:France BSN:Germany

Address

17, Boulevard Haussmann, Paris, FRA, 75009

Website

https://www.danone.com

Following the acquisition of WhiteWave, Danone restructured the firm into three broad segments: essential dairy and plant-based products, which represents just over half of group revenue; specialised nutrition; and bottled water. The firm's portfolio includes well-known brands such as Danone/Dannon dairy products, Nutrilon and Cow & Gate infant nutrition, Evian and Volvic bottled water, as well as leading medical nutrition brands. Danone derives about 60% of its annual sales outside Western Europe, up from about just one third in 2001.