Amadeus IT Group (XMAD:AMS) ROCE % : 14.38% (As of Dec. 2023)

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What is Amadeus IT Group 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. Amadeus IT Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 14.38%.

Amadeus IT Group ROCE % Historical Data

The historical data trend for Amadeus IT Group'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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Amadeus IT Group ROCE % Chart

Amadeus IT Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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19.50

-9.62

-1.15

10.69

17.06

Amadeus IT Group 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															11.11	16.37	18.42	18.76	14.38

Amadeus IT Group ROCE % Calculation

Amadeus IT Group'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 )
	=	1453.8	/	( ( (11714.5 - 2968.5)	+	(10795.4 - 2493.7) )	/ 2 )
	=	1453.8	/	( (8746	+	8301.7)	/ 2 )
	=	1453.8	/	8523.85
	=	17.06 %

Amadeus IT Group'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 )
	=	1208.8	/	( ( (10793.6 - 2285.4)	+	(10795.4 - 2493.7) )	/ 2 )
	=	1208.8	/	( ( 8508.2	+	8301.7 )	/ 2 )
	=	1208.8	/	8404.95
	=	14.38 %

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

Amadeus IT Group (XMAD:AMS) 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.

Amadeus IT Group ROCE % Related Terms

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Amadeus IT Group (XMAD:AMS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Amadeus IT Group SA (XMAD:AMS) » Definitions » ROCE %

Comparable Companies

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AMADY:USA AMADF:USA AMS:Mexico 1AMS:Italy AMSe:UK 0P2W:UK AI3A:Germany

Address

Salvador de Madariaga, 1, Madrid, ESP, 28027

Website

https://www.amadeus.com

Among the top three operators, Amadeus' 40%-plus market share in air global distribution system bookings is the largest in the industry. The GDS segment represented 56% of total prepandemic sales in 2019. The company has a growing IT solutions division (44% of 2019 revenue) that addresses the airline, airport, rail, hotel, and business intelligence markets. Transaction fees, which are tied to volume and not price, account for the bulk of sales and profits.