KLMR (KLM Royal Dutch Airlines) ROCE %: 14.28% (As of Dec. 2018)

What is KLM Royal Dutch Airlines ROCE %?

KLM Royal Dutch Airlines KLMR ROCE % is 14.28% as of Dec. 2018.

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. KLM Royal Dutch Airlines's annualized ROCE % for the quarter that ended in Dec. 2018 was 14.28%.

KLM Royal Dutch Airlines (OTCPK:KLMR) 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.

KLM Royal Dutch Airlines ROCE % Related Terms

KLM Royal Dutch Airlines ROCE % Historical Data

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The historical data trend for KLM Royal Dutch Airlines'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.

KLM Royal Dutch Airlines ROCE % Chart

KLM Royal Dutch Airlines Annual Data

Trend

Mar04

Mar05

Mar06

Mar07

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROCE %

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14.16

5.60

13.79

-7.65

14.28

KLM Royal Dutch Airlines Semi-Annual Data
	Mar94	Mar95	Mar96	Mar97	Mar98	Mar99	Mar00	Mar01	Mar02	Mar03	Mar04	Mar05	Mar06	Mar07	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18
ROCE %	Get a 7-Day Free Trial															14.16	5.60	13.79	-7.65	14.28

KLM Royal Dutch Airlines ROCE % Calculation

KLM Royal Dutch Airlines's annualized ROCE % for the fiscal year that ended in Dec. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2018 )		(A: Dec. 2017 )		(A: Dec. 2018 )
	=	1100.114	/	( ( (13213.018 - 5147.929)	+	(12639.363 - 5292.378) )	/ 2 )
	=	1100.114	/	( (8065.089	+	7346.985)	/ 2 )
	=	1100.114	/	7706.037
	=	14.28 %

KLM Royal Dutch Airlines's ROCE % of for the quarter that ended in Dec. 2018 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2018 )		(Q: Dec. 2017 )		(Q: Dec. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2018 )		(Q: Dec. 2017 )		(Q: Dec. 2018 )
	=	1100.114	/	( ( (13213.018 - 5147.929)	+	(12639.363 - 5292.378) )	/ 2 )
	=	1100.114	/	( ( 8065.089	+	7346.985 )	/ 2 )
	=	1100.114	/	7706.037
	=	14.28 %

(1) Note: The EBIT data used here is one times the annual (Dec. 2018) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 14.28% mean?

KLM Royal Dutch Airlines (KLMR) has a ROCE % of 14.28% as of Dec. 2018.

Is KLM Royal Dutch Airlines' ROCE % too high?

KLM Royal Dutch Airlines' current ROCE % is 14.28%. The Transportation industry median ROCE % is 7.74. KLM Royal Dutch Airlines' value of 14.28% is 84.5% above this industry median.

How does KLM Royal Dutch Airlines' ROCE % compare to ?

KLM Royal Dutch Airlines' ROCE % of 14.28% can be compared against companies in the Transportation industry. The industry median ROCE % is 7.74. KLM Royal Dutch Airlines' value of 14.28% is 84.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Transportation company?

The median ROCE % among Transportation companies is 7.74, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KLM Royal Dutch Airlines's current ROCE % of 14.28% is 84.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median ROCE % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLM Royal Dutch Airlines's current ROCE % is 14.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is KLM Royal Dutch Airlines stock overvalued right now?

KLM Royal Dutch Airlines (KLMR) has a current ROCE % of 14.28%. The current ROCE % is 14.28% and 84.5% above the Transportation industry median of 7.74. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For KLM Royal Dutch Airlines (KLMR), the current ROCE % is 14.28% as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

KLM Royal Dutch Airlines Business Description

Industry Industrials Transportation

Comparable Companies

Address Amsterdamseweg 55, Amstelveen, NH, NLD, 1182 GP

Website https://www.klm.com

KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.