adidas AG (MEX:ADS) ROCE % : 23.93% (As of Sep. 2024)

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What is adidas 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. adidas AG's annualized ROCE % for the quarter that ended in Sep. 2024 was 23.93%.

adidas AG ROCE % Historical Data

The historical data trend for adidas 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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adidas AG ROCE % Chart

adidas AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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25.54

7.24

15.14

4.07

2.02

adidas 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															16.68	-18.71	14.01	14.42	23.93

adidas AG ROCE % Calculation

adidas 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 )
	=	4164.892	/	( ( (419164 - 191180.585)	+	(333561.558 - 148881) )	/ 2 )
	=	4164.892	/	( (227983.415	+	184680.558)	/ 2 )
	=	4164.892	/	206331.9865
	=	2.02 %

adidas 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 )
	=	54721.988	/	( ( (386911.11 - 172847.904)	+	(428444.319 - 185080.078) )	/ 2 )
	=	54721.988	/	( ( 214063.206	+	243364.241 )	/ 2 )
	=	54721.988	/	228713.7235
	=	23.93 %

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

adidas AG (MEX:ADS) 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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adidas AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » adidas AG (MEX:ADS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ADDYY:USA ADDDF:USA 1ADS:Italy ADSd:UK 0OLD:UK ADS:Germany ADS:Austria

Address

Adi-Dassler-Strasse 1, Herzogenaurach, BY, DEU, 91074

Website

https://www.adidas-group.com

Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through about 1,900 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and owned e-commerce that is available in 67 countries. The company was founded in 1949 in Germany.

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