Nestle Pakistan (KAR:NESTLE) ROCE % : 73.41% (As of Sep. 2024)

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What is Nestle Pakistan 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. Nestle Pakistan's annualized ROCE % for the quarter that ended in Sep. 2024 was 73.41%.

Nestle Pakistan ROCE % Historical Data

The historical data trend for Nestle Pakistan'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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Nestle Pakistan ROCE % Chart

Nestle Pakistan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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93.22

94.10

92.21

128.19

156.37

Nestle Pakistan 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															128.22	74.60	143.42	124.60	73.41

Nestle Pakistan ROCE % Calculation

Nestle Pakistan'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 )
	=	31477.204	/	( ( (83651.751 - 66613.1)	+	(97889.911 - 74668.349) )	/ 2 )
	=	31477.204	/	( (17038.651	+	23221.562)	/ 2 )
	=	31477.204	/	20130.1065
	=	156.37 %

Nestle Pakistan'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 )
	=	20028.024	/	( ( (103335.379 - 74271.547)	+	(88738.715 - 63234.983) )	/ 2 )
	=	20028.024	/	( ( 29063.832	+	25503.732 )	/ 2 )
	=	20028.024	/	27283.782
	=	73.41 %

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

Nestle Pakistan (KAR:NESTLE) 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.

Nestle Pakistan ROCE % Related Terms

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Nestle Pakistan Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nestle Pakistan Ltd (KAR:NESTLE) » Definitions » ROCE %

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Traded in Other Exchanges

N/A

Address

Packages Mall, PO Amer Sidhu, Shahrah-e-Roomi, Lahore, PAK, 54760

Website

https://www.nestle.pk

Nestle Pakistan Ltd is a food and beverage company. The principal activity of the company is the manufacturing, processing, and sale of food products including imported products. The company's operating segments: Dairy and Nutrition Products, Powdered and Liquid Beverages, and Others. It generates maximum revenue from the Dairy and Nutrition Products segment. The company has operational footprints across Pakistan, Afghanistan, the United States of America, and other foreign countries. Its key products are ambient dairy, confectionery, coffee, beverages, infant nutrition, and drinking water. The majority of its revenue is derived from Pakistan.

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