SGS AG (XSWX:SGSN) ROCE %

: 22.69% (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. SGS AG's annualized ROCE % for the quarter that ended in Dec. 2023 was 22.69%.

SGS AG ROCE % Historical Data

The historical data trend for SGS 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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SGS AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

24.67

17.87

21.30

19.61

20.66

SGS AG Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %																22.49	19.49	22.10	21.96	22.69

SGS AG ROCE % Calculation

SGS 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 )
	=	872	/	( ( (7122 - 2862)	+	(6761 - 2579) )	/ 2 )
	=	872	/	( (4260	+	4182)	/ 2 )
	=	872	/	4221
	=	20.66 %

SGS 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: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	882	/	( ( (6608 - 3016)	+	(6761 - 2579) )	/ 2 )
	=	882	/	( ( 3592	+	4182 )	/ 2 )
	=	882	/	3887
	=	22.69 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

SGS AG (XSWX:SGSN) 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.

SGS AG ROCE % Related Terms

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SGS AG (XSWX:SGSN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » SGS AG (XSWX:SGSN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SGSOY:USA SGSOF:USA SGSNz:UK 0QMI:UK

Address

1 Place des Alpes, P.O. Box 2152, Geneva, CHE, CH-1211

Website

https://www.sgs.com

Switzerland-listed SGS is the largest and one of the oldest companies in the testing, inspection, and certification industry. The company's primary activities involve testing products and materials, inspecting sites/industrial equipment, and certifying products and systems to ensure global/company standards. SGS is one of only four TIC companies that operate globally across numerous industries, including agriculture, food and life science, and transport services. SGS was first listed in 1981 and employs almost 100,000 people worldwide.

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