Ratos AB (LTS:0GWP) ROCE % : 5.01% (As of Mar. 2024)

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What is Ratos AB 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. Ratos AB's annualized ROCE % for the quarter that ended in Mar. 2024 was 5.01%.

Ratos AB ROCE % Historical Data

The historical data trend for Ratos AB'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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Ratos AB ROCE % Chart

Ratos AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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6.08

6.43

8.01

6.34

10.71

Ratos AB Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															3.55	14.75	7.05	18.25	5.01

Ratos AB ROCE % Calculation

Ratos AB'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 )
	=	2891	/	( ( (37175 - 9555)	+	(36129 - 9751) )	/ 2 )
	=	2891	/	( (27620	+	26378)	/ 2 )
	=	2891	/	26999
	=	10.71 %

Ratos AB's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	1300	/	( ( (36129 - 9751)	+	(36210 - 10663) )	/ 2 )
	=	1300	/	( ( 26378	+	25547 )	/ 2 )
	=	1300	/	25962.5
	=	5.01 %

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

Ratos AB (LTS:0GWP) 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.

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Ratos AB (LTS:0GWP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ratos AB (LTS:0GWP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RTOBF:USA RATO B:Sweden RATO A:Sweden RATOBs:UK 0KBQ:UK RAZB:Germany

Address

Sturegatan 10, Box 511, Stockholm, SWE, SE-114 11

Website

https://www.ratos.com

Ratos AB is an investment company that owns and develops unlisted medium- and small-sized Nordic companies. Its portfolio has a concentration in construction, consumer goods/commerce and industrials. Traditionally, Ratos is the largest owner of its companies, and it seeks to influence the company's development. The company sets thresholds for minimum investment amounts and chooses not to invest in the early phases of a company's life cycle. Potential portfolio companies are traditionally headquartered in the Nordic region, but Ratos removes qualifications for portfolio company add-on acquisitions. Potential acquisitions are selected through either internal processes or with the help of investment banks and other advisors.

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