Sierra Wireless (XSWX:SW) ROCE % : -8.54% (As of Sep. 2022)

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What is Sierra Wireless 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. Sierra Wireless's annualized ROCE % for the quarter that ended in Sep. 2022 was -8.54%.

Sierra Wireless ROCE % Historical Data

The historical data trend for Sierra Wireless'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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Sierra Wireless ROCE % Chart

Sierra Wireless Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROCE %

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1.69

-4.69

-13.74

-17.42

-23.10

Sierra Wireless Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROCE %	Get a 7-Day Free Trial															-27.15	-39.25	-12.91	13.75	-8.54

Sierra Wireless ROCE % Calculation

Sierra Wireless's annualized ROCE % for the fiscal year that ended in Dec. 2021 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2021 )		(A: Dec. 2020 )		(A: Dec. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2021 )		(A: Dec. 2020 )		(A: Dec. 2021 )
	=	-81.427	/	( ( (534.258 - 152.805)	+	(503.836 - 180.325) )	/ 2 )
	=	-81.427	/	( (381.453	+	323.511)	/ 2 )
	=	-81.427	/	352.482
	=	-23.10 %

Sierra Wireless's ROCE % of for the quarter that ended in Sep. 2022 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2022 )		(Q: Jun. 2022 )		(Q: Sep. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2022 )		(Q: Jun. 2022 )		(Q: Sep. 2022 )
	=	-32.216	/	( ( (582.548 - 200.128)	+	(588.073 - 215.822) )	/ 2 )
	=	-32.216	/	( ( 382.42	+	372.251 )	/ 2 )
	=	-32.216	/	377.3355
	=	-8.54 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2022) EBIT data.

Sierra Wireless (XSWX:SW) 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.

Sierra Wireless ROCE % Related Terms

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Sierra Wireless (XSWX:SW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Sierra Wireless Inc (XSWX:SW) » Definitions » ROCE %

Comparable Companies

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N/A

Address

13811 Wireless Way, Richmond, BC, CAN, V6V 3A4

Website

https://www.sierrawireless.com

Sierra Wireless Inc is a wireless communication equipment designer and provider of Device-To-Cloud Internet-of-Things solutions. The company's product and services portfolio contain products such as high-speed cellular modules and services such as connectivity services, cloud platforms, and cellular gateways, among others. It operates through two business segments: Internet of Things solutions and Embedded broadband. The vast majority of revenue comes from the company's embedded broadband segment, and more than half of its revenue is earned in the Americas and Asia-Pacific region.

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