Ermenegildo Zegna NV (Ermenegildo Zegna NV) ROCE % : 12.76% (As of Dec. 2023)

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What is Ermenegildo Zegna NV 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. Ermenegildo Zegna NV's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.76%.

Ermenegildo Zegna NV ROCE % Historical Data

The historical data trend for Ermenegildo Zegna NV'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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Ermenegildo Zegna NV ROCE % Chart

Ermenegildo Zegna NV Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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4.16

-0.81

-4.40

6.82

12.22

Ermenegildo Zegna NV Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial					-16.67	6.15	7.91	11.51	12.76

Ermenegildo Zegna NV ROCE % Calculation

Ermenegildo Zegna NV'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 )
	=	217.868	/	( ( (2570.685 - 918.415)	+	(3017.46 - 1103.733) )	/ 2 )
	=	217.868	/	( (1652.27	+	1913.727)	/ 2 )
	=	217.868	/	1782.9985
	=	12.22 %

Ermenegildo Zegna NV'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 )
	=	236.308	/	( ( (2896.546 - 1107.172)	+	(3017.46 - 1103.733) )	/ 2 )
	=	236.308	/	( ( 1789.374	+	1913.727 )	/ 2 )
	=	236.308	/	1851.5505
	=	12.76 %

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

Ermenegildo Zegna NV (NYSE:ZGN) 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.

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Ermenegildo Zegna NV (Ermenegildo Zegna NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Ermenegildo Zegna NV (NYSE:ZGN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

JN0:Germany

Address

99/100 Viale Roma, Valdilana location, Trivero, ITA, 13835

Website

https://www.zegnagroup.com

Ermenegildo Zegna NV designs, creates and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear and accessories under the Thom Browne brand. It operates in two segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile and Third Party Brands) and the Thom Browne segment.