Nortel Inversora (BUE:NORT6) ROCE %: 38.30% (As of Sep. 2017)


What is Nortel Inversora ROCE %?

Nortel Inversora BUE:NORT6 ROCE % is 38.30% as of Sep. 2017. The stock has 9 warning signs 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. Nortel Inversora's annualized ROCE % for the quarter that ended in Sep. 2017 was 38.30%.

Nortel Inversora  (BUE:NORT6) 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.

Nortel Inversora ROCE % Related Terms

Nortel Inversora ROCE % Historical Data

* Premium members only.

The historical data trend for Nortel Inversora'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.

Nortel Inversora ROCE % Chart

Nortel Inversora Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.28 39.42 37.43 30.24 28.22

Nortel Inversora Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 31.89 33.73 42.02 33.91 38.30

Nortel Inversora ROCE % Calculation

Nortel Inversora's annualized ROCE % for the fiscal year that ended in Dec. 2016 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=7486/( ( (38542 - 16945) + (47974 - 16524) )/ 2 )
=7486/( (21597+31450)/ 2 )
=7486/26523.5
=28.22 %

Nortel Inversora's ROCE % of for the quarter that ended in Sep. 2017 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2017 )  (Q: Jun. 2017 )(Q: Sep. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2017 )  (Q: Jun. 2017 )(Q: Sep. 2017 )
=13756/( ( (52213 - 17921) + (58074 - 20524) )/ 2 )
=13756/( ( 34292 + 37550 )/ 2 )
=13756/35921
=38.30 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2017) 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 38.30% mean?
Nortel Inversora (BUE:NORT6) has a ROCE % of 38.30% as of Sep. 2017.
Is Nortel Inversora's ROCE % too high?
Nortel Inversora's current ROCE % is 38.30%. The Telecommunication Services industry median ROCE % is 7.72. Nortel Inversora's value of 38.30% is 396.1% above this industry median.
How does Nortel Inversora's ROCE % compare to GLIBA and TDCAF?
Nortel Inversora's ROCE % of 38.30% can be compared against companies in the Telecommunication Services industry. The industry median ROCE % is 7.72. Nortel Inversora's value of 38.30% is 396.1% 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 Telecommunication Services company?
The median ROCE % among Telecommunication Services companies is 7.72, based on 352 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. Nortel Inversora's current ROCE % of 38.30% is 396.1% 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 Telecommunication Services industry, the median ROCE % is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortel Inversora's current ROCE % is 38.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortel Inversora stock overvalued right now?
Nortel Inversora (BUE:NORT6) has a current ROCE % of 38.30%. The current ROCE % is 38.30% and 396.1% above the Telecommunication Services industry median of 7.72. 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 Nortel Inversora (BUE:NORT6), the current ROCE % is 38.30% as of Sep. 2017. 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.

Nortel Inversora Business Description

Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.