Tyco International (BUE:JCI) ROCE %: 13.59% (As of Jun. 2016)


What is Tyco International ROCE %?

Tyco International BUE:JCI ROCE % is 13.59% as of Jun. 2016.

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. Tyco International's annualized ROCE % for the quarter that ended in Jun. 2016 was 13.59%.

Tyco International  (BUE:JCI) 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.

Tyco International ROCE % Related Terms

Tyco International ROCE % Historical Data

* Premium members only.

The historical data trend for Tyco International'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.

Tyco International ROCE % Chart

Tyco International Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.82 1.01 8.52 9.94 10.25

Tyco International Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 12.93 6.02 7.34 11.70 13.59

Tyco International ROCE % Calculation

Tyco International's annualized ROCE % for the fiscal year that ended in Sep. 2015 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2015 )  (A: Sep. 2014 )(A: Sep. 2015 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2015 )  (A: Sep. 2014 )(A: Sep. 2015 )
=7681.679/( ( (99419.971 - 29272.863) + (115845.738 - 36151.844) )/ 2 )
=7681.679/( (70147.108+79693.894)/ 2 )
=7681.679/74920.501
=10.25 %

Tyco International's ROCE % of for the quarter that ended in Jun. 2016 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=16384.244/( ( (169567.044 - 47214.732) + (162360.584 - 43560.839) )/ 2 )
=16384.244/( ( 122352.312 + 118799.745 )/ 2 )
=16384.244/120576.0285
=13.59 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2016) 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 13.59% mean?
Tyco International (BUE:JCI) has a ROCE % of 13.59% as of Jun. 2016.
Is Tyco International's ROCE % too high?
Tyco International's current ROCE % is 13.59%. The Business Services industry median ROCE % is 8.88. Tyco International's value of 13.59% is 53% above this industry median.
How does Tyco International's ROCE % compare to ALLE and ADT?
Tyco International's ROCE % of 13.59% can be compared against companies in the Business Services industry. The industry median ROCE % is 8.88. Tyco International's value of 13.59% is 53% 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 Business Services company?
The median ROCE % among Business Services companies is 8.88, based on 1,070 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. Tyco International's current ROCE % of 13.59% is 53% 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 Business Services industry, the median ROCE % is 8.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tyco International's current ROCE % is 13.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tyco International stock overvalued right now?
Tyco International (BUE:JCI) has a current ROCE % of 13.59%. The current ROCE % is 13.59% and 53% above the Business Services industry median of 8.88. 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 Tyco International (BUE:JCI), the current ROCE % is 13.59% as of Jun. 2016. 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.

Tyco International Business Description

Address Unit 1202 Building 1000 City Gate, Mahon, Cork, IRL, 8212
Tyco International PLC is a provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT (outside North American markets). The revenue breakdown is 37% North America installation and services, 38% rest of world installation and services, and 25% global products. Tyco completed its spin-off of ADT and the flow control business in September 2012, five years after its prior three-way split.