Terna SpA (WBO:TRN) ROCE % : 8.27% (As of Sep. 2023)

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What is Terna SpA 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. Terna SpA's annualized ROCE % for the quarter that ended in Sep. 2023 was 8.27%.

Terna SpA ROCE % Historical Data

The historical data trend for Terna SpA'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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Terna SpA ROCE % Chart

Terna SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.30

7.65

8.01

8.77

8.29

Terna SpA 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															11.89	8.21	9.22	8.27	9.22

Terna SpA ROCE % Calculation

Terna SpA's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	1345.9	/	( ( (22359.2 - 7647.7)	+	(22802.9 - 6808.5) )	/ 2 )
	=	1345.9	/	( (14711.5	+	15994.4)	/ 2 )
	=	1345.9	/	15352.95
	=	8.77 %

Terna SpA's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	1362.8	/	( ( (22536 - 5878.9)	+	(20527.9 - 4213.6) )	/ 2 )
	=	1362.8	/	( ( 16657.1	+	16314.3 )	/ 2 )
	=	1362.8	/	16485.7
	=	8.27 %

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

Terna SpA (WBO:TRN) 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.

Terna SpA ROCE % Related Terms

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Terna SpA (WBO:TRN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Terna SpA (WBO:TRN) » Definitions » ROCE %

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TEZNY:USA TERRF:USA TRN:Italy TRNm:UK 0LBM:UK UEI:Germany

Address

Viale Egidio Galbani, 70, Rome, ITA, 00156

Website

https://www.terna.it

Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.