Vertex (LTS:0A3L) ROCE % : 2.97% (As of Sep. 2024)

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What is Vertex 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. Vertex's annualized ROCE % for the quarter that ended in Sep. 2024 was 2.97%.

Vertex ROCE % Historical Data

The historical data trend for Vertex'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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Vertex ROCE % Chart

Vertex Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-106.40

-1.04

-2.62

-5.51

Vertex 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															-2.78	-3.29	-1.98	6.72	2.97

Vertex ROCE % Calculation

Vertex'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 )
	=	-17.51	/	( ( (719.192 - 403.209)	+	(759.927 - 440.779) )	/ 2 )
	=	-17.51	/	( (315.983	+	319.148)	/ 2 )
	=	-17.51	/	317.5655
	=	-5.51 %

Vertex'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 )
	=	19.584	/	( ( (1023.83 - 439.069)	+	(1190.84 - 457.921) )	/ 2 )
	=	19.584	/	( ( 584.761	+	732.919 )	/ 2 )
	=	19.584	/	658.84
	=	2.97 %

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

Vertex (LTS:0A3L) 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.

Vertex ROCE % Related Terms

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Vertex Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Vertex Inc (LTS:0A3L) » Definitions » ROCE %

Comparable Companies

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VERX:USA 56X:Germany

Address

2301 Renaissance Boulevard, King of Prussia, PA, USA, 19406

Website

https://www.vertexinc.com

Vertex Inc is a provider of tax technology and services. Its software, content, and services help customers stay in compliance with indirect taxes that occur in taxing jurisdictions all over the world. Vertex provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, Tax Data Management, document management, and compliance and reporting among others. The company derives revenue from software subscriptions.

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