Li & Fung (HKSE:00494) ROCE % : 5.17% (As of Dec. 2019)

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What is Li & Fung 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. Li & Fung's annualized ROCE % for the quarter that ended in Dec. 2019 was 5.17%.

Li & Fung ROCE % Historical Data

The historical data trend for Li & Fung'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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Li & Fung ROCE % Chart

Li & Fung Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROCE %

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12.97

7.10

8.22

7.73

5.19

Li & Fung Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19
ROCE %	Get a 7-Day Free Trial															7.95	7.36	10.40	6.45	5.17

Li & Fung ROCE % Calculation

Li & Fung'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 )
	=	1247.261	/	( ( (44700.304 - 21847.591)	+	(45265.039 - 20087.667) )	/ 2 )
	=	1247.261	/	( (22852.713	+	25177.372)	/ 2 )
	=	1247.261	/	24015.0425
	=	5.19 %

Li & Fung's ROCE % of for the quarter that ended in Dec. 2019 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2019 )		(Q: Jun. 2019 )		(Q: Dec. 2019 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2019 )		(Q: Jun. 2019 )		(Q: Dec. 2019 )
	=	1144.576	/	( ( (43047.383 - 23915.004)	+	(45265.039 - 20087.667) )	/ 2 )
	=	1144.576	/	( ( 19132.379	+	25177.372 )	/ 2 )
	=	1144.576	/	22154.8755
	=	5.17 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2019) EBIT data.

Li & Fung (HKSE:00494) 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.

Li & Fung ROCE % Related Terms

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Li & Fung (HKSE:00494) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Li & Fung Ltd (HKSE:00494) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

31 Victoria Street, Victoria Place, 5th Floor, Hamilton, BMU, HM 10

Website

https://www.lifung.com

Li & Fung Ltd is a supply-chain manager that serves retailers globally with sourcing and logistics services. The company's operating segment includes Services and Products. It generates maximum revenue from the Services segment. The Services segment consists of Supply Chain Solutions and Logistics businesses. Its Products segment consists of the Onshore Wholesale business and the three Product Verticals (furniture, beauty, and sweaters) representing its principal-to-principal business. Geographically, it derives a majority of revenue from the United States of America.

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