Varian Medical Systems (FRA:VNM) ROCE % : 18.37% (As of Dec. 2020)

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What is Varian Medical Systems 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. Varian Medical Systems's annualized ROCE % for the quarter that ended in Dec. 2020 was 18.37%.

Varian Medical Systems ROCE % Historical Data

The historical data trend for Varian Medical Systems'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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Varian Medical Systems ROCE % Chart

Varian Medical Systems Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

ROCE %

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20.17

15.74

26.02

21.36

14.95

Varian Medical Systems Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
ROCE %	Get a 7-Day Free Trial															20.23	9.55	14.31	16.99	18.37

Varian Medical Systems ROCE % Calculation

Varian Medical Systems's annualized ROCE % for the fiscal year that ended in Sep. 2020 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2020 )		(A: Sep. 2019 )		(A: Sep. 2020 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2020 )		(A: Sep. 2019 )		(A: Sep. 2020 )
	=	316.083	/	( ( (3724.344 - 1710.672)	+	(3788.408 - 1574.471) )	/ 2 )
	=	316.083	/	( (2013.672	+	2213.937)	/ 2 )
	=	316.083	/	2113.8045
	=	14.95 %

Varian Medical Systems's ROCE % of for the quarter that ended in Dec. 2020 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2020 )		(Q: Sep. 2020 )		(Q: Dec. 2020 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2020 )		(Q: Sep. 2020 )		(Q: Dec. 2020 )
	=	413.3	/	( ( (3788.408 - 1574.471)	+	(3720.454 - 1434.308) )	/ 2 )
	=	413.3	/	( ( 2213.937	+	2286.146 )	/ 2 )
	=	413.3	/	2250.0415
	=	18.37 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2020) EBIT data.

Varian Medical Systems (FRA:VNM) 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.

Varian Medical Systems ROCE % Related Terms

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Varian Medical Systems (FRA:VNM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Varian Medical Systems Inc (FRA:VNM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3100 Hansen Way, Palo Alto, CA, USA, 94304-1038

Website

https://www.varian.com

Varian Medical Systems designs, manufactures, and sells radiation technology for use in two business segments: oncology systems and proton therapy. The Americas account for the largest portion of revenue (47%), followed by Europe, the Middle East, and Africa (33%) and Asia-Pacific (19%).

Varian Medical Systems (FRA:VNM) Headlines

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