Open Text (FRA:OTX) ROCE % : 5.44% (As of Dec. 2023)

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What is Open Text 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. Open Text's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.44%.

Open Text ROCE % Historical Data

The historical data trend for Open Text'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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Open Text ROCE % Chart

Open Text Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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8.58

6.49

9.28

8.37

5.13

Open Text Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															15.38	5.51	2.85	6.96	5.44

Open Text ROCE % Calculation

Open Text's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	539.923	/	( ( (9629.308 - 1388.972)	+	(15773.332 - 2971.704) )	/ 2 )
	=	539.923	/	( (8240.336	+	12801.628)	/ 2 )
	=	539.923	/	10520.982
	=	5.13 %

Open Text's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	686.472	/	( ( (15510.982 - 2644.239)	+	(15078.473 - 2713.563) )	/ 2 )
	=	686.472	/	( ( 12866.743	+	12364.91 )	/ 2 )
	=	686.472	/	12615.8265
	=	5.44 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Open Text (FRA:OTX) 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.

Open Text ROCE % Related Terms

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Open Text (FRA:OTX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Open Text Corp (FRA:OTX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

OTEX:USA OTX:Germany OTEX:Canada

Address

275 Frank Tompa Drive, Waterloo, ON, CAN, N2L 0A1

Website

https://www.opentext.com

Open Text Corp grew out of a technology project involving the Oxford English Dictionary at Canada's University of Waterloo in the mid-1980s. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). The OpenText Information Management platform and services provide secure and scalable solutions for global enterprises, SMBs, governments, and consumers around the world. It also accelerates transformations with intelligent tools and services. The company is based in Ontario, Canada.

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