Essilorluxottica (CHIX:ELP) ROCE % : 7.59% (As of Jun. 2024)

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What is Essilorluxottica 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. Essilorluxottica's annualized ROCE % for the quarter that ended in Jun. 2024 was 7.59%.

Essilorluxottica ROCE % Historical Data

The historical data trend for Essilorluxottica'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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Essilorluxottica ROCE % Chart

Essilorluxottica Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.88

0.98

4.79

6.17

Essilorluxottica Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial															6.71	5.58	7.06	5.52	7.59

Essilorluxottica ROCE % Calculation

Essilorluxottica'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 )
	=	3233	/	( ( (60561 - 7888)	+	(60523 - 8441) )	/ 2 )
	=	3233	/	( (52673	+	52082)	/ 2 )
	=	3233	/	52377.5
	=	6.17 %

Essilorluxottica's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	3880	/	( ( (60523 - 8441)	+	(61494 - 11378) )	/ 2 )
	=	3880	/	( ( 52082	+	50116 )	/ 2 )
	=	3880	/	51099
	=	7.59 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

Essilorluxottica (CHIX:ELp) 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.

Essilorluxottica ROCE % Related Terms

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Essilorluxottica Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Essilorluxottica (CHIX:ELp) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ESLOY:USA ESLOF:USA 1EL:Italy 0OMK:UK EL:France ESL:Germany

Address

147, Rue de Paris, Charenton-Le-Pont, Paris, FRA, 94220

Website

https://www.essilorluxottica.com

EssilorLuxottica is a combination of the leading manufacturer of premium frames and sunglasses and the leading manufacturer of optical lenses. Both companies are significantly larger than the next biggest player in their respective fields and command over 15% of the fragmented global eyewear market. The company has a broad geographical presence, with around 36% of sales in Europe, 47% in North America, and the rest in Asia and Latin America.