Covestro AG (LTS:0RBE) ROCE % : 3.54% (As of Sep. 2024)

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What is Covestro AG 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. Covestro AG's annualized ROCE % for the quarter that ended in Sep. 2024 was 3.54%.

Covestro AG ROCE % Historical Data

The historical data trend for Covestro AG'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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Covestro AG ROCE % Chart

Covestro AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.76

7.04

20.22

2.52

2.21

Covestro AG 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															2.91	-2.32	2.70	3.28	3.54

Covestro AG ROCE % Calculation

Covestro AG'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 )
	=	242	/	( ( (14585 - 3055)	+	(13637 - 3298) )	/ 2 )
	=	242	/	( (11530	+	10339)	/ 2 )
	=	242	/	10934.5
	=	2.21 %

Covestro AG'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 )
	=	364	/	( ( (13971 - 3633)	+	(13863 - 3633) )	/ 2 )
	=	364	/	( ( 10338	+	10230 )	/ 2 )
	=	364	/	10284
	=	3.54 %

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

Covestro AG (LTS:0RBE) 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.

Covestro AG ROCE % Related Terms

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Covestro AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Covestro AG (LTS:0RBE) » Definitions » ROCE %

Comparable Companies

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COVTY:USA CVVTF:USA 11COV:Italy 1COVd:UK 1COV:Germany 1COV:Austria

Address

Kaiser-Wilhelm-Allee 60, Leverkusen, NW, DEU, 51373

Website

https://www.covestro.com/en

Covestro, formerly Bayer Material Science, was spun off from the Bayer Group in 2015. The firm is a market leader in polyurethanes and polycarbonates, products that the company discovered in the mid-20th century. It also has a sizable speciality chemicals business that is focused on coatings and adhesives. Demand for Covestro's products is driven primarily by cyclical end markets, such as automotive, construction, and furniture.

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