Moody's (WBO:MOCO) ROCE % : 17.54% (As of Dec. 2023)

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What is Moody's 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. Moody's's annualized ROCE % for the quarter that ended in Dec. 2023 was 17.54%.

Moody's ROCE % Historical Data

The historical data trend for Moody's'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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Moody's ROCE % Chart

Moody's Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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26.08

25.18

27.31

17.15

18.46

Moody's 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															12.90	19.54	19.35	19.25	17.54

Moody's ROCE % Calculation

Moody's'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 )
	=	2069.669	/	( ( (13545.456 - 2242)	+	(13408.374 - 2292.5) )	/ 2 )
	=	2069.669	/	( (11303.456	+	11115.874)	/ 2 )
	=	2069.669	/	11209.665
	=	18.46 %

Moody's'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 )
	=	1955.044	/	( ( (13296.967 - 2126.053)	+	(13408.374 - 2292.5) )	/ 2 )
	=	1955.044	/	( ( 11170.914	+	11115.874 )	/ 2 )
	=	1955.044	/	11143.394
	=	17.54 %

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

Moody's (WBO:MOCO) 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.

Moody's ROCE % Related Terms

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Moody's (WBO:MOCO) Business Description

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Comparable Companies

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MCO:USA MCO:Mexico DUT:Germany DUT:Germany MCOR34:Brazil

Address

7 World Trade Center at 250 Greenwich Street, New York, NY, USA, 10007

Website

https://www.moodys.com

Moody's, along with S&P Ratings, is a leading provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. The other segment, Moody's Analytics, consists of research, data, and analytics as well as enterprise risk solutions. RD&A's products include credit research, quantitative credit scores, economic research, business intelligence, know-your-customer tools, commercial real estate data and analytical tools, and training services. ERS includes risk-management software solutions for financial institutions.