SKF AB (CHIX:SKFBS) ROCE % : 11.68% (As of Sep. 2024)

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What is SKF AB 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. SKF AB's annualized ROCE % for the quarter that ended in Sep. 2024 was 11.68%.

SKF AB ROCE % Historical Data

The historical data trend for SKF AB'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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SKF AB ROCE % Chart

SKF AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.89

9.76

14.61

9.75

12.27

SKF AB 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															11.62	6.13	13.70	11.11	11.68

SKF AB ROCE % Calculation

SKF AB'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 )
	=	10481	/	( ( (110923 - 24440)	+	(111903 - 27614) )	/ 2 )
	=	10481	/	( (86483	+	84289)	/ 2 )
	=	10481	/	85386
	=	12.27 %

SKF AB'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 )
	=	10104	/	( ( (113379 - 24613)	+	(113435 - 29252) )	/ 2 )
	=	10104	/	( ( 88766	+	84183 )	/ 2 )
	=	10104	/	86474.5
	=	11.68 %

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

SKF AB (CHIX:SKFBs) 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.

SKF AB ROCE % Related Terms

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SKF AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » SKF AB (CHIX:SKFBs) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SKUFF:USA SKFRY:USA SKF B:Sweden SKF A:Sweden 0NWX:UK 0NWW:UK SKFB:Germany

Address

Sven Wingquists Gata 2, Gothenburg, SWE, SE-415 50

Website

https://www.skf.com

SKF's history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF, along with the Schaeffler Group, are the top two global ball bearing suppliers followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world's ball bearings. However, most of them have sector niches as ball bearings for industrial purposes are engineered for specific applications. SKF is based out of Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, which has a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.

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