Sandoz Group AG (CHIX:SDZZ) ROCE % : 11.01% (As of Dec. 2023)

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What is Sandoz Group AG 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. Sandoz Group AG's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.01%.

Sandoz Group AG ROCE % Historical Data

The historical data trend for Sandoz Group AG'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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Sandoz Group AG ROCE % Chart

Sandoz Group AG Annual Data

Trend

Dec22

Dec23

ROCE %

12.35

2.75

Sandoz Group AG Quarterly Data
	Dec22	Dec23
ROCE %	49.40	11.01

Sandoz Group AG ROCE % Calculation

Sandoz Group AG'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 )
	=	287.114	/	( ( (16356.101 - 7372.682)	+	(16803.064 - 4927.63) )	/ 2 )
	=	287.114	/	( (8983.419	+	11875.434)	/ 2 )
	=	287.114	/	10429.4265
	=	2.75 %

Sandoz Group AG's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Dec. 2022 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Dec. 2022 )		(Q: Dec. 2023 )
	=	1148.456	/	( ( (16356.101 - 7372.682)	+	(16803.064 - 4927.63) )	/ 2 )
	=	1148.456	/	( ( 8983.419	+	11875.434 )	/ 2 )
	=	1148.456	/	10429.4265
	=	11.01 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Sandoz Group AG (CHIX:SDZz) 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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Sandoz Group AG (CHIX:SDZZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Sandoz Group AG (CHIX:SDZz) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SDZXF:USA SDZNY:USA D8Y0:Germany SDZ:Switzerland

Address

Forum 1, Novartis Campus, Basel, CHE, CH-4056

Website

https://www.sandoz.com

Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $9 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006 as well as U.S.'s first biosimilar, Zarxio, in 2015. It currently has eight commercialized biosimilars in a number of markets and has over 20 assets in pipeline.

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