LUNA (Luna Innovations) ROCE %: 3.97% (As of Sep. 2023)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LUNA Luna Innovations Inc LUNA
16 GF Score
Price $1.32
View Full Analysis

What is Luna Innovations ROCE %?

Luna Innovations LUNA +1.54% 16 ROCE % is 3.97% as of Sep. 2023. GuruFocus rates LUNA with a GF Score™ of 16/100.

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. Luna Innovations's annualized ROCE % for the quarter that ended in Sep. 2023 was 3.97%.

Luna Innovations  (OTCPK:LUNA) 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.

Luna Innovations ROCE % Related Terms

Luna Innovations ROCE % Historical Data

* Premium members only.

The historical data trend for Luna Innovations'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.

Luna Innovations ROCE % Chart

Luna Innovations Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.43 5.56 1.12 -2.65 -1.55

Luna Innovations 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.55 5.38 -6.89 -1.06 3.97
LUNA
16GF Score
Luna Innovations Inc LUNA
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Luna Innovations ROCE % Calculation

Luna Innovations'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 )
=-1.663/( ( (130.237 - 32.687) + (151.007 - 33.631) )/ 2 )
=-1.663/( (97.55+117.376)/ 2 )
=-1.663/107.463
=-1.55 %

Luna Innovations'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 )
=5.068/( ( (155.131 - 30.043) + (165.094 - 35.01) )/ 2 )
=5.068/( ( 125.088 + 130.084 )/ 2 )
=5.068/127.586
=3.97 %

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

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 3.97% mean?
Luna Innovations (LUNA) has a ROCE % of 3.97% as of Sep. 2023.
Is Luna Innovations' ROCE % too high?
Luna Innovations' current ROCE % is 3.97%. The Hardware industry median ROCE % is 5.93. Luna Innovations' value of 3.97% is 33.1% below this industry median. Overall, Luna Innovations has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Luna Innovations' ROCE % compare to ODYS and WRAP?
Luna Innovations' ROCE % of 3.97% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.93. Luna Innovations' value of 3.97% is 33.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Hardware company?
The median ROCE % among Hardware companies is 5.93, based on 2,455 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luna Innovations's current ROCE % of 3.97% is 33.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luna Innovations's current ROCE % is 3.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luna Innovations stock overvalued right now?
Luna Innovations (LUNA) has a current ROCE % of 3.97%. The current ROCE % is 3.97% and 33.1% below the Hardware industry median of 5.93. Luna Innovations' overall GF Score™ is 16/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Luna Innovations (LUNA), the current ROCE % is 3.97% as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Luna Innovations Business Description

Address 301 1st Street South West, Suite 200, Roanoke, VA, USA, 24011
Luna Innovations Inc is engaged in optical technology, providing high-performance fiber optic test, measurement, and control products for the telecommunications, and photonics industries, and distributed fiber optic sensing solutions that measure and monitor materials and structures for applications in aerospace, automotive, oil, and gas, security, and infrastructure. Its Lightwave segment develops, manufactures, and markets optical measurements technologies like Sensing including short, medium, and long-range distributed fiber optic sensing solutions and Terahertz measurement products, and Communications test and photonic control including test equipment for communications devices and networks and specialty laser and photonic components. It derives a majority of its revenue from the U.S.
16GF Score

Get the complete analysis for LUNA

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.32
Price