LRLCY (L'Oreal) ROCE % : 26.96% (As of Jun. 2024)

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What is L'Oreal 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. L'Oreal's annualized ROCE % for the quarter that ended in Jun. 2024 was 26.96%.

L'Oreal ROCE % Historical Data

The historical data trend for L'Oreal'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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L'Oreal ROCE % Chart

L'Oreal Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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17.75

15.57

19.85

25.07

23.81

L'Oreal Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial															27.98	21.77	26.48	21.70	26.96

L'Oreal ROCE % Calculation

L'Oreal'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 )
	=	8974.809	/	( ( (49623.093 - 14533.475)	+	(56548.637 - 16248.31) )	/ 2 )
	=	8974.809	/	( (35089.618	+	40300.327)	/ 2 )
	=	8974.809	/	37694.9725
	=	23.81 %

L'Oreal's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	10753.284	/	( ( (56548.637 - 16248.31)	+	(57033.369 - 17574.166) )	/ 2 )
	=	10753.284	/	( ( 40300.327	+	39459.203 )	/ 2 )
	=	10753.284	/	39879.765
	=	26.96 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

L'Oreal (OTCPK:LRLCY) 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.

L'Oreal ROCE % Related Terms

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L'Oreal Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » L'Oreal SA (OTCPK:LRLCY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LRLCF:USA OR N:Mexico ORp:UK 0NZM:UK OR:France LOR:Germany OR:Austria

Address

41, Rue Martre, Clichy Cedex, Paris, FRA, 92117

Website

https://www.loreal.com

Founded in 1909, L'Oreal has grown into the largest beauty company in the world, participating in categories including skincare (40% of sales), makeup (20%), haircare (27%), fragrance (9%), and sanitary products (4%). The firm also has a diversified geographic footprint, generating 32% of sales in its home market of Western Europe, 27% from North America, 26% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oreal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancome, Yves Saint Laurent, Maybelline, Kiehl's, L'Oreal Paris, Kerastase, CeraVe, Garnier, and Armani.