Deere (XTER:DCO) ROCE % : 18.60% (As of Jan. 2024)

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What is Deere 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. Deere's annualized ROCE % for the quarter that ended in Jan. 2024 was 18.60%.

Deere ROCE % Historical Data

The historical data trend for Deere'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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Deere ROCE % Chart

Deere Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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12.17

9.98

16.05

19.47

24.95

Deere Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															19.53	29.03	26.85	24.79	18.60

Deere ROCE % Calculation

Deere's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	14651.984	/	( ( (91380.45 - 33621.875)	+	(98570.389 - 38887.608) )	/ 2 )
	=	14651.984	/	( (57758.575	+	59682.781)	/ 2 )
	=	14651.984	/	58720.678
	=	24.95 %

Deere's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	11078.424	/	( ( (98570.389 - 38887.608)	+	(93058.578 - 33593.292) )	/ 2 )
	=	11078.424	/	( ( 59682.781	+	59465.286 )	/ 2 )
	=	11078.424	/	59574.0335
	=	18.60 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Deere (XTER:DCO) 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.

Deere ROCE % Related Terms

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Deere (XTER:DCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Deere & Co (XTER:DCO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

DE:USA DE:Mexico 1DE:Italy DCOd:UK DEEC34:Brazil DEER:Austria DE:Argentina

Address

One John Deere Place, Moline, IL, USA, 61265

Website

https://www.deere.com

Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.