Volkswagen AG (WBO:VOW) ROCE %

: 10.71% (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. Volkswagen AG's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.71%.

Volkswagen AG ROCE % Historical Data

The historical data trend for Volkswagen AG'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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Volkswagen AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

6.84

4.28

6.35

6.36

6.91

Volkswagen AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																6.81	6.01	5.85	5.04	10.71

Volkswagen AG ROCE % Calculation

Volkswagen AG'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 )
	=	26784	/	( ( (564013 - 182723)	+	(600338 - 205874) )	/ 2 )
	=	26784	/	( (381290	+	394464)	/ 2 )
	=	26784	/	387877
	=	6.91 %

Volkswagen AG'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 )
	=	42168	/	( ( (594577 - 201358)	+	(600338 - 205874) )	/ 2 )
	=	42168	/	( ( 393219	+	394464 )	/ 2 )
	=	42168	/	393841.5
	=	10.71 %

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

Volkswagen AG (WBO:VOW) 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.

Volkswagen AG ROCE % Related Terms

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Volkswagen AG (WBO:VOW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Volkswagen AG (WBO:VOW) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

VWAPY:USA VLKPF:USA VWAGY:USA VLKAF:USA VOW:Poland VOW3N:Mexico VOW3:Italy VOLKSWAGEN:Hungary VOW3d:UK 0P6O:UK 0P6N:UK VOW3:Germany VOW:Germany VOW:Czech Republic

Address

Berliner Ring 2, Wolfsburg, NI, DEU, 38440

Website

https://www.volkswagenag.com

Volkswagen is one of the world's largest automotive manufacturers. Automotive brands include Volkswagen passenger cars, Audi, Bentley, Lamborghini, Porsche, SEAT, and Skoda. Commercial vehicle brands include MAN, Navistar, Scania, and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer financing for vehicle purchases, vehicle leasing, banking, and other financial services. In 2022, Europe was Volkswagen's largest light vehicle market at 41% of total volume, followed by China at 37%, and rest of world at 22%.

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