Sky (LSE:SKY) ROCE % : 7.47% (As of Jun. 2018)

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What is Sky 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. Sky's annualized ROCE % for the quarter that ended in Jun. 2018 was 7.47%.

Sky ROCE % Historical Data

The historical data trend for Sky'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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Sky ROCE % Chart

Sky Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

ROCE %

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29.15

23.61

8.17

8.07

8.59

Sky Semi-Annual Data
	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18
ROCE %	Get a 7-Day Free Trial															7.44	7.25	8.74	9.79	7.47

Sky ROCE % Calculation

Sky's annualized ROCE % for the fiscal year that ended in Jun. 2018 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2018 )		(A: Jun. 2017 )		(A: Jun. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2018 )		(A: Jun. 2017 )		(A: Jun. 2018 )
	=	1098	/	( ( (18438 - 5550)	+	(18002 - 5321) )	/ 2 )
	=	1098	/	( (12888	+	12681)	/ 2 )
	=	1098	/	12784.5
	=	8.59 %

Sky's ROCE % of for the quarter that ended in Jun. 2018 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2018 )		(Q: Dec. 2017 )		(Q: Jun. 2018 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2018 )		(Q: Dec. 2017 )		(Q: Jun. 2018 )
	=	946	/	( ( (18748 - 6098)	+	(18002 - 5321) )	/ 2 )
	=	946	/	( ( 12650	+	12681 )	/ 2 )
	=	946	/	12665.5
	=	7.47 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2018) EBIT data.

Sky (LSE:SKY) 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.

Sky ROCE % Related Terms

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Sky (LSE:SKY) Business Description

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Address

Website

http://www.sky.com

Sky is the U.K.'s only satellite television operator and its largest pay-TV provider, with 12.9 million retail subscribers. It is also the largest pay-TV provider in Italy, with 4.8 million customers, and is a large operator in Germany and Austria, with 5.3 million pay-TV subscribers. The firm's strategy is to dominate the pay-TV markets in its respective countries. In the U.K., it also offers bundles of broadband, telephony and other services. In total, it sells 61.7 million products.