Essity AB (OSTO:ESSITY B) ROCE % : 14.78% (As of Sep. 2024)

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What is Essity AB 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. Essity AB's annualized ROCE % for the quarter that ended in Sep. 2024 was 14.78%.

Essity AB ROCE % Historical Data

The historical data trend for Essity AB'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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Essity AB ROCE % Chart

Essity AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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12.44

14.49

9.15

6.20

10.86

Essity AB 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															10.41	9.98	12.45	14.70	14.78

Essity AB ROCE % Calculation

Essity AB'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 )
	=	15409	/	( ( (210600 - 62718)	+	(202993 - 67191) )	/ 2 )
	=	15409	/	( (147882	+	135802)	/ 2 )
	=	15409	/	141842
	=	10.86 %

Essity AB'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 )
	=	19860	/	( ( (182313 - 47312)	+	(180392 - 46675) )	/ 2 )
	=	19860	/	( ( 135001	+	133717 )	/ 2 )
	=	19860	/	134359
	=	14.78 %

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

Essity AB (OSTO:ESSITY B) 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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Essity AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Essity AB (OSTO:ESSITY B) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ETTYF:USA ESSITY A:Sweden ESSITYB:Mexico ESSIBs:UK 0RQD:UK 0RQC:UK ESWB:Germany

Address

Klarabergsviadukten 63, PO Box 200, Stockholm, SWE, SE-101 23

Website

https://www.essity.com

Essity is a health and hygiene company spun out of Svenska Cellulosa in June 2017. Essity's products span the feminine care, baby care, toilet paper, facial tissue, and wet wipes categories, as well as hand soap, hand sanitizers, and tissue dispensers for institutional customers. Essity also offers medical solutions in the form of wound care, orthopedics, and compression therapy, accounting for around 7% of net sales. Essity operates in 150 markets and generates 60% of its revenue in Europe.

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