Global Payments (WBO:GPN) ROCE %

: 5.00% (As of Dec. 2023)

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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. Global Payments's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.00%.

Global Payments ROCE % Historical Data

The historical data trend for Global Payments'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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Global Payments Annual Data

Trend

May14

May15

May16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.25

2.22

3.55

1.77

4.49

Global Payments 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															4.22	0.67	5.86	5.58	5.00

Global Payments ROCE % Calculation

Global Payments'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 )
	=	1678.199	/	( ( (42299.709 - 6512.364)	+	(46372.861 - 7451.293) )	/ 2 )
	=	1678.199	/	( (35787.345	+	38921.568)	/ 2 )
	=	1678.199	/	37354.4565
	=	4.49 %

Global Payments'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 )
	=	1971.904	/	( ( (45842.355 - 5830.682)	+	(46372.861 - 7451.293) )	/ 2 )
	=	1971.904	/	( ( 40011.673	+	38921.568 )	/ 2 )
	=	1971.904	/	39466.6205
	=	5.00 %

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

Global Payments (WBO:GPN) 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.

Global Payments ROCE % Related Terms

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Global Payments (WBO:GPN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Global Payments Inc (WBO:GPN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

GPN:USA GPN:Mexico GLO:Germany

Address

3550 Lenox Road, Atlanta, GA, USA, 30326

Website

https://www.globalpaymentsinc.com

Global Payments is a leading provider of payment processing and software solutions and focuses on serving small and midsize merchants. The company operates in 30 countries and generates about one fourth of its revenue from outside North America, primarily in Europe and Asia. In 2019, Global Payments merged with Total System Services in an all-stock deal that gave Total System Services shareholders 48% of the combined company's shares. The merger added issuer processing operations.