Merck KGaA (LTS:0O14) ROCE % : 11.37% (As of Sep. 2024)

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What is Merck KGaA 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. Merck KGaA's annualized ROCE % for the quarter that ended in Sep. 2024 was 11.37%.

Merck KGaA ROCE % Historical Data

The historical data trend for Merck KGaA'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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Merck KGaA ROCE % Chart

Merck KGaA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.33

9.35

12.43

12.23

9.66

Merck KGaA 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															10.06	6.97	9.81	8.62	11.37

Merck KGaA ROCE % Calculation

Merck KGaA'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 )
	=	3805	/	( ( (48535 - 9514)	+	(48495 - 8699) )	/ 2 )
	=	3805	/	( (39021	+	39796)	/ 2 )
	=	3805	/	39408.5
	=	9.66 %

Merck KGaA'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 )
	=	4528	/	( ( (49875 - 9931)	+	(50142 - 10463) )	/ 2 )
	=	4528	/	( ( 39944	+	39679 )	/ 2 )
	=	4528	/	39811.5
	=	11.37 %

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

Merck KGaA (LTS:0O14) 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.

Merck KGaA ROCE % Related Terms

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Merck KGaA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck KGaA (LTS:0O14) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MKKGY:USA MKGAF:USA MRK1:Mexico 1MRK:Italy MRKd:UK MRK:Germany MRK:Bulgaria

Address

Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293

Website

https://www.emdgroup.com

Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (44% of 2023 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (38%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (17%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.

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