Celgene (BUE:CELG) ROCE %: 26.05% (As of Sep. 2019)


What is Celgene ROCE %?

Celgene BUE:CELG 10 ROCE % is 26.05% as of Sep. 2019. GuruFocus rates BUE:CELG with a GF Score™ of 10/100. The stock has 1 warning sign investors should review.

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. Celgene's annualized ROCE % for the quarter that ended in Sep. 2019 was 26.05%.

Celgene  (BUE:CELG) 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.

Celgene ROCE % Related Terms

Celgene ROCE % Historical Data

* Premium members only.

The historical data trend for Celgene'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.

Celgene ROCE % Chart

Celgene Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.12 13.32 12.61 20.14 24.67

Celgene Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.06 17.08 25.08 24.79 26.05

Celgene ROCE % Calculation

Celgene's annualized ROCE % for the fiscal year that ended in Dec. 2018 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2018 )  (A: Dec. 2017 )(A: Dec. 2018 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2018 )  (A: Dec. 2017 )(A: Dec. 2018 )
=210129.976/( ( (575542.365 - 57036.762) + (1337773.469 - 152969.193) )/ 2 )
=210129.976/( (518505.603+1184804.276)/ 2 )
=210129.976/851654.9395
=24.67 %

Celgene's ROCE % of for the quarter that ended in Sep. 2019 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2019 )  (Q: Jun. 2019 )(Q: Sep. 2019 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2019 )  (Q: Jun. 2019 )(Q: Sep. 2019 )
=471344.32/( ( (1750657.298 - 164642.119) + (2313267.102 - 280133.33) )/ 2 )
=471344.32/( ( 1586015.179 + 2033133.772 )/ 2 )
=471344.32/1809574.4755
=26.05 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2019) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 26.05% mean?
Celgene (BUE:CELG) has a ROCE % of 26.05% as of Sep. 2019.
Is Celgene's ROCE % too high?
Celgene's current ROCE % is 26.05%. The Drug Manufacturers industry median ROCE % is 7.03. Celgene's value of 26.05% is 270.6% above this industry median. Overall, Celgene has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Celgene's ROCE % compare to GILD and BIIB?
Celgene's ROCE % of 26.05% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.03. Celgene's value of 26.05% is 270.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.03, based on 959 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Celgene's current ROCE % of 26.05% is 270.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Celgene's current ROCE % is 26.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celgene stock overvalued right now?
Celgene (BUE:CELG) has a current ROCE % of 26.05%. The current ROCE % is 26.05% and 270.6% above the Drug Manufacturers industry median of 7.03. Celgene's overall GF Score™ is 10/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Celgene (BUE:CELG), the current ROCE % is 26.05% as of Sep. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Celgene Business Description

Address 86 Morris Avenue, Summit, NJ, USA, 07901
Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and Pomalyst to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat myelodysplastic syndromes, multiple myeloma, and mantle cell lymphoma. Acquisitions have brought MDS drug Vidaza, T-cell lymphoma drug Istodax, and cancer drug Abraxane. The firm's first immunology drug, Otezla, was approved in the U.S. in 2014. Pending acquisitions of Juno and Impact bring additional drugs for Celgene's blood cancer pipeline.