Mellanox Technologies (FRA:ZZE) ROCE % : 21.87% (As of Mar. 2020)

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What is Mellanox Technologies 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. Mellanox Technologies's annualized ROCE % for the quarter that ended in Mar. 2020 was 21.87%.

Mellanox Technologies ROCE % Historical Data

The historical data trend for Mellanox Technologies'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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Mellanox Technologies ROCE % Chart

Mellanox Technologies Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROCE %

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9.54

2.95

-1.07

9.03

14.29

Mellanox Technologies Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20
ROCE %	Get a 7-Day Free Trial															14.73	11.52	12.55	17.43	21.87

Mellanox Technologies ROCE % Calculation

Mellanox Technologies's annualized ROCE % for the fiscal year that ended in Dec. 2019 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2019 )		(A: Dec. 2018 )		(A: Dec. 2019 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2019 )		(A: Dec. 2018 )		(A: Dec. 2019 )
	=	201.67	/	( ( (1395.147 - 187.027)	+	(1907.81 - 294.135) )	/ 2 )
	=	201.67	/	( (1208.12	+	1613.675)	/ 2 )
	=	201.67	/	1410.8975
	=	14.29 %

Mellanox Technologies's ROCE % of for the quarter that ended in Mar. 2020 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2020 )		(Q: Dec. 2019 )		(Q: Mar. 2020 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2020 )		(Q: Dec. 2019 )		(Q: Mar. 2020 )
	=	370.196	/	( ( (1907.81 - 294.135)	+	(2082.699 - 311.45) )	/ 2 )
	=	370.196	/	( ( 1613.675	+	1771.249 )	/ 2 )
	=	370.196	/	1692.462
	=	21.87 %

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

Mellanox Technologies (FRA:ZZE) 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.

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Mellanox Technologies (FRA:ZZE) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Mellanox Technologies Ltd (FRA:ZZE) » Definitions » ROCE %

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Address

Beit Mellanox, Yokneam, ISR, 20692

Website

http://www.mellanox.com

Mellanox Technologies Ltd is engaged in the development, manufacturing, marketing and sales of end-to-end Ethernet and InfiniBand intelligent interconnect solutions and services for servers, storage, and hyper-converged infrastructure. The company offers integrated circuits, adapter cards, switch systems, cables, modules, software, services, and accessories. The company supplies its products mainly to the storage and communications infrastructure equipment vendors. The company operates its business mainly in United States, Europe, China, Japan, India, Taiwan and Australia.

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