Nokian Tyres (FRA:NRE) ROCE % : 0.86% (As of Sep. 2024)

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What is Nokian Tyres 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. Nokian Tyres's annualized ROCE % for the quarter that ended in Sep. 2024 was 0.86%.

Nokian Tyres ROCE % Historical Data

The historical data trend for Nokian Tyres'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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Nokian Tyres ROCE % Chart

Nokian Tyres Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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19.40

5.95

14.27

1.03

2.23

Nokian Tyres 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															1.80	8.62	-5.66	1.81	0.86

Nokian Tyres ROCE % Calculation

Nokian Tyres'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 )
	=	39.3	/	( ( (2209.7 - 557.2)	+	(2325.2 - 454.9) )	/ 2 )
	=	39.3	/	( (1652.5	+	1870.3)	/ 2 )
	=	39.3	/	1761.4
	=	2.23 %

Nokian Tyres'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 )
	=	16.8	/	( ( (2333.8 - 433.9)	+	(2524.8 - 527.6) )	/ 2 )
	=	16.8	/	( ( 1899.9	+	1997.2 )	/ 2 )
	=	16.8	/	1948.55
	=	0.86 %

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

Nokian Tyres (FRA:NRE) 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.

Nokian Tyres ROCE % Related Terms

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Nokian Tyres Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nokian Tyres PLC (FRA:NRE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

NKRKY:USA NKRKF:USA 1TYRES:Italy TYRESh:UK 0FFY:UK TYRES:Finland NRE1:Austria

Address

Pirkkalaistie 7, P.O. Box 20, Nokia, FIN, 37101

Website

https://www.nokiantyres.com

Nokian Tyres PLC develops and manufactures rubber tires under the Nokian Tyres brand name for passenger cars, vans, trucks and heavy machinery. The company sells tires to wholesale distributors and through company-owned retail stores, which are operated under the Vianor brand name. The firm organizes itself into three segments based on product and distribution type: Passenger Car Tyres, Heavy Tyres, and Vianor. The Passenger car tyres segment generates the majority of revenue.