IPG Photonics (LTS:0J86) ROCE % : 2.61% (As of Dec. 2024)

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What is IPG Photonics 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. IPG Photonics's annualized ROCE % for the quarter that ended in Dec. 2024 was 2.61%.

IPG Photonics ROCE % Historical Data

The historical data trend for IPG Photonics'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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IPG Photonics ROCE % Chart

IPG Photonics Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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8.80

12.65

8.69

9.35

0.63

IPG Photonics Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															4.75	2.29	2.48	-5.01	2.61

IPG Photonics ROCE % Calculation

IPG Photonics's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	14.477	/	( ( (2698.898 - 214.861)	+	(2289.264 - 205.019) )	/ 2 )
	=	14.477	/	( (2484.037	+	2084.245)	/ 2 )
	=	14.477	/	2284.141
	=	0.63 %

IPG Photonics's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	55.396	/	( ( (2355.13 - 194.182)	+	(2289.264 - 205.019) )	/ 2 )
	=	55.396	/	( ( 2160.948	+	2084.245 )	/ 2 )
	=	55.396	/	2122.5965
	=	2.61 %

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

IPG Photonics (LTS:0J86) 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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IPG Photonics Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » IPG Photonics Corp (LTS:0J86) » Definitions » ROCE %

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IPGP:USA IPF:Germany IPF:Germany I1PG34:Brazil

Address

377 Simarano Drive, Marlborough, MA, USA, 01752

Website

https://www.ipgphotonics.com

IPG Photonics Corp is a vertically integrated developer and manufacturer of high-performance fiber lasers, fiber amplifiers, and diode lasers, which are used in diverse applications in the manufacturing, automotive, industrial, aerospace, semiconductor, and consumer end markets. The company operates in one segment which involves the design, development, production and distribution of fiber lasers, laser and non-laser systems, fiber amplifiers, and related optical components. A large majority of the firm's revenue is derived from materials processing applications for fiber lasers, including cutting and welding, marking and engraving, and micro-processing. The company generates a majority of its revenue from North America and also has its presence in China, Japan, Germany, and other markets.

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