Edwards Lifesciences (BSP:E1WL34) ROCE % : 16.04% (As of Sep. 2024)

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What is Edwards Lifesciences 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. Edwards Lifesciences's annualized ROCE % for the quarter that ended in Sep. 2024 was 16.04%.

Edwards Lifesciences ROCE % Historical Data

The historical data trend for Edwards Lifesciences'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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Edwards Lifesciences ROCE % Chart

Edwards Lifesciences Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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17.27

25.99

23.32

20.26

22.56

Edwards Lifesciences Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															23.77	21.02	17.90	16.04	14.12

Edwards Lifesciences ROCE % Calculation

Edwards Lifesciences'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 )
	=	7916.607	/	( ( (43497.479 - 5362.897)	+	(45877.807 - 5857.221) )	/ 2 )
	=	7916.607	/	( (38134.582	+	40020.586)	/ 2 )
	=	7916.607	/	39077.584
	=	20.26 %

Edwards Lifesciences's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	8734.22	/	( ( (54395.84 - 6554.884)	+	(71831.911 - 10766.037) )	/ 2 )
	=	8734.22	/	( ( 47840.956	+	61065.874 )	/ 2 )
	=	8734.22	/	54453.415
	=	16.04 %

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

Edwards Lifesciences (BSP:E1WL34) 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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Edwards Lifesciences Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Edwards Lifesciences Corp (BSP:E1WL34) » Definitions » ROCE %

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EW:USA EW:Mexico 1EW:Italy EWL:Germany EWLS:Austria

Address

One Edwards Way, Irvine, CA, USA, 92614

Website

https://www.edwards.com

Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. It has established itself as a leader across key products, including surgical tissue heart valves, transcatheter aortic valves, and transcatheter mitral and tricuspid valve technologies. The firm derives about 60% of its total sales from outside the US.

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