Telecom Italia SpA (LTS:0GA3) ROCE % : 4.00% (As of Sep. 2023)

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What is Telecom Italia SpA 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. Telecom Italia SpA's annualized ROCE % for the quarter that ended in Sep. 2023 was 4.00%.

Telecom Italia SpA ROCE % Historical Data

The historical data trend for Telecom Italia SpA'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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Telecom Italia SpA ROCE % Chart

Telecom Italia SpA Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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0.94

5.68

4.39

-5.80

1.46

Telecom Italia SpA Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															5.64	-9.73	1.31	5.79	4.00

Telecom Italia SpA ROCE % Calculation

Telecom Italia SpA's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	733	/	( ( (69187 - 16364)	+	(62027 - 14142) )	/ 2 )
	=	733	/	( (52823	+	47885)	/ 2 )
	=	733	/	50354
	=	1.46 %

Telecom Italia SpA's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	1828	/	( ( (61329 - 16542)	+	(61567 - 14862) )	/ 2 )
	=	1828	/	( ( 44787	+	46705 )	/ 2 )
	=	1828	/	45746
	=	4.00 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

Telecom Italia SpA (LTS:0GA3) 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.

Telecom Italia SpA ROCE % Related Terms

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Telecom Italia SpA (LTS:0GA3) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telecom Italia SpA (LTS:0GA3) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TIAOF:USA TIAJF:USA TIAIY:USA TIIAY:USA TITR:Italy TIT:Italy TITm:UK TITRm:UK 0H6I:UK TQI:Germany TIT:Austria

Address

Corso D'Italia, 41, Roma, ITA, 00198

Website

https://www.telecomitalia.com

Telecom Italia is the incumbent telecommunications operator in Italy with more than 30% market share in the Italian mobile market and 45% market share in broadband. In the mobile market, it competes with Vodafone, Wind Tre and Iliad. In November 2023 TIM sold its fixed network to KKR for EUR 18.8 billion, and will become a pure service provider. TIM also has a 20% wireless market share in Brazil and has started building a broadband network in the country, although its reach is very small compared with its competitors Telefonica and America Movil.

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