UL Solutions (FRA:72R) ROCE % : 24.78% (As of Sep. 2024)

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What is UL Solutions 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. UL Solutions's annualized ROCE % for the quarter that ended in Sep. 2024 was 24.78%.

UL Solutions ROCE % Historical Data

The historical data trend for UL Solutions'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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UL Solutions ROCE % Chart

UL Solutions Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

12.40

11.71

9.92

16.96

18.53

UL Solutions Quarterly Data
	Dec19	Dec20	Mar21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial											15.60	17.32	17.55	29.60	24.78

UL Solutions ROCE % Calculation

UL Solutions'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 )
	=	349.377	/	( ( (2567.68 - 655.136)	+	(2508.912 - 650.153) )	/ 2 )
	=	349.377	/	( (1912.544	+	1858.759)	/ 2 )
	=	349.377	/	1885.6515
	=	18.53 %

UL Solutions'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 )
	=	468.52	/	( ( (2547.318 - 687.46)	+	(2592.177 - 671.245) )	/ 2 )
	=	468.52	/	( ( 1859.858	+	1920.932 )	/ 2 )
	=	468.52	/	1890.395
	=	24.78 %

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

UL Solutions (FRA:72R) 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.

UL Solutions ROCE % Related Terms

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UL Solutions Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

ULS:USA 72R:Germany

Address

333 Pfingsten Road, Northbrook, IL, USA, 60062

Website

https://www.ul.com

UL Solutions is a global leader specializing in a broad range of product testing, inspection, and certification services. UL Solutions is the for-profit branch out of three organizations under the UL Enterprise. TIC operations make up nearly all of UL Solutions' total revenue and are composed of two segments: industrial and consumer. UL Solutions' remaining business includes software and advisory, which complements its core TIC offerings. The firm operates globally.

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