A.O. Smith (FRA:3SM) ROCE % : 26.09% (As of Dec. 2024)

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What is A.O. Smith 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. A.O. Smith's annualized ROCE % for the quarter that ended in Dec. 2024 was 26.09%.

A.O. Smith ROCE % Historical Data

The historical data trend for A.O. Smith'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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A.O. Smith ROCE % Chart

A.O. Smith Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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18.87

28.20

10.12

31.47

31.31

A.O. Smith Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															30.80	33.98	36.23	26.87	26.09

A.O. Smith ROCE % Calculation

A.O. Smith's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	675.854	/	( ( (2947.146 - 866.84)	+	(3094.2 - 856.826) )	/ 2 )
	=	675.854	/	( (2080.306	+	2237.374)	/ 2 )
	=	675.854	/	2158.84
	=	31.31 %

A.O. Smith's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	563.452	/	( ( (2841.934 - 760.624)	+	(3094.2 - 856.826) )	/ 2 )
	=	563.452	/	( ( 2081.31	+	2237.374 )	/ 2 )
	=	563.452	/	2159.342
	=	26.09 %

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

A.O. Smith (FRA:3SM) 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.

A.O. Smith ROCE % Related Terms

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A.O. Smith Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » A.O. Smith Corp (FRA:3SM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AOS:USA AOS:Mexico 0L7A:UK 3SM:Germany

Address

11270 West Park Place, Suite 170, Milwaukee, WI, USA, 53224

Website

https://www.aosmith.com

A.O. Smith manufactures a broad lineup of water heaters, boilers, and water treatment products. The company has two reporting segments: North America (75% of sales) and rest of world (25% of sales). A.O. Smith is the leading manufacturer of water heaters in North America for the residential and commercial markets, with approximately 37% and 54% market share, respectively. Residential water heaters account for Most of North American sales and are distributed equally through wholesale and retail channels. Most of A.O. Smith's international revenue is from China, a market the company entered during the mid-1990s.

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