Otofarma SpA (MIL:OTO) ROCE %: 33.56% (As of Dec. 2024)


MIL:OTO Otofarma SpA MIL:OTO
16 GF Score
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What is Otofarma SpA ROCE %?

Otofarma SpA MIL:OTO -0.71% 16 ROCE % is 33.56% as of Dec. 2024. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review.

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. Otofarma SpA's annualized ROCE % for the quarter that ended in Dec. 2024 was 33.56%.

Otofarma SpA  (MIL:OTO) 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.

Otofarma SpA ROCE % Related Terms

Otofarma SpA ROCE % Historical Data

* Premium members only.

The historical data trend for Otofarma SpA'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.

Otofarma SpA ROCE % Chart

Otofarma SpA Annual Data
Trend Dec23 Dec24
ROCE %
23.15 33.56

Otofarma SpA Semi-Annual Data
Dec23 Dec24
ROCE % 23.15 33.56
MIL:OTO
16GF Score
Otofarma SpA MIL:OTO
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Otofarma SpA ROCE % Calculation

Otofarma SpA'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 )
=1.935/( ( (8.218 - 3.562) + (10.183 - 3.309) )/ 2 )
=1.935/( (4.656+6.874)/ 2 )
=1.935/5.765
=33.56 %

Otofarma SpA'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: Dec. 2023 )(Q: Dec. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2024 )  (Q: Dec. 2023 )(Q: Dec. 2024 )
=1.935/( ( (8.218 - 3.562) + (10.183 - 3.309) )/ 2 )
=1.935/( ( 4.656 + 6.874 )/ 2 )
=1.935/5.765
=33.56 %

(1) Note: The EBIT data used here is one times the annual (Dec. 2024) 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 33.56% mean?
Otofarma SpA (MIL:OTO) has a ROCE % of 33.56% as of Dec. 2024.
Is Otofarma SpA's ROCE % too high?
Otofarma SpA's current ROCE % is 33.56%. The Medical Devices & Instruments industry median ROCE % is 2.20. Otofarma SpA's value of 33.56% is 1425.5% above this industry median. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's ROCE % compare to ABT and SYK?
Otofarma SpA's ROCE % of 33.56% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROCE % is 2.20. Otofarma SpA's value of 33.56% is 1425.5% above 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 Medical Devices & Instruments company?
The median ROCE % among Medical Devices & Instruments companies is 2.20, based on 813 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. Otofarma SpA's current ROCE % of 33.56% is 1425.5% above 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 Medical Devices & Instruments industry, the median ROCE % is 2.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current ROCE % is 33.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current ROCE % of 33.56%. The current ROCE % is 33.56% and 1425.5% above the Medical Devices & Instruments industry median of 2.20. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign to review. 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 Otofarma SpA (MIL:OTO), the current ROCE % is 33.56% as of Dec. 2024. 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.

Otofarma SpA Business Description

Address Ripuaria Way, 50k, Marina di Varcaturo, Naples, ITA, 80014
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score

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