China Mobile (FRA:CTM) ROCE % : 11.00% (As of Sep. 2024)

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What is China Mobile 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. China Mobile's annualized ROCE % for the quarter that ended in Sep. 2024 was 11.00%.

China Mobile ROCE % Historical Data

The historical data trend for China Mobile'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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China Mobile ROCE % Chart

China Mobile Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.08

12.10

13.14

12.25

11.95

China Mobile Quarterly Data
	Jun19	Dec19	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															11.32	9.56	10.79	17.92	11.00

China Mobile ROCE % Calculation

China Mobile'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 )
	=	22357.092	/	( ( (262080.679 - 72216.264)	+	(255912.505 - 71735.26) )	/ 2 )
	=	22357.092	/	( (189864.415	+	184177.245)	/ 2 )
	=	22357.092	/	187020.83
	=	11.95 %

China Mobile'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 )
	=	20471.9	/	( ( (258876.715 - 70975.078)	+	(257037.499 - 72594.675) )	/ 2 )
	=	20471.9	/	( ( 187901.637	+	184442.824 )	/ 2 )
	=	20471.9	/	186172.2305
	=	11.00 %

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

China Mobile (FRA:CTM) 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.

China Mobile ROCE % Related Terms

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China Mobile Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » China Mobile Ltd (FRA:CTM) » Definitions » ROCE %

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00941:Hong Kong CTM:Germany 600941:China

Address

99 Queen’s Road Central, 60th Floor, The Center, Hong Kong, HKG

Website

https://www.chinamobileltd.com

China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (1 billion) but also the largest in the world. It has 60% of the total wireless market in China and 50% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 3G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.