Novo Nordisk AS (CHIX:NOVOBC) ROCE % : 76.00% (As of Sep. 2024)

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What is Novo Nordisk AS 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. Novo Nordisk AS's annualized ROCE % for the quarter that ended in Sep. 2024 was 76.00%.

Novo Nordisk AS ROCE % Historical Data

The historical data trend for Novo Nordisk AS'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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Novo Nordisk AS ROCE % Chart

Novo Nordisk AS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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79.16

75.77

69.99

64.50

79.36

Novo Nordisk AS Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															96.09	74.95	97.77	68.35	76.00

Novo Nordisk AS ROCE % Calculation

Novo Nordisk AS'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 )
	=	105216	/	( ( (241257 - 120940)	+	(314486 - 169655) )	/ 2 )
	=	105216	/	( (120317	+	144831)	/ 2 )
	=	105216	/	132574
	=	79.36 %

Novo Nordisk AS'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 )
	=	140820	/	( ( (369383 - 187909)	+	(397441 - 208358) )	/ 2 )
	=	140820	/	( ( 181474	+	189083 )	/ 2 )
	=	140820	/	185278.5
	=	76.00 %

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

Novo Nordisk AS (CHIX:NOVOBc) 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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Novo Nordisk AS Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Novo Nordisk AS (CHIX:NOVOBc) » Definitions » ROCE %

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NONOF:USA NVO:USA NOVOB:Mexico NVO:Mexico 0TDD:UK 0QIU:UK NOVO B:Denmark NOV:Germany NOV:Germany NOVA:Germany NOV:Germany NOV:Germany NOVA:Germany N1VO34:Brazil NOV:Bulgaria NNO2:Austria

Address

Novo Alle 1, Bagsvaerd, DNK, 2880

Website

https://www.novonordisk.com

With roughly one third of the global branded diabetes treatment market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments such as GLP-1 therapy, oral antidiabetic agents, and obesity treatments. Novo also has a biopharmaceutical segment (constituting roughly 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.

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