Leader Harmonious Drive Systems Co (SHSE:688017) ROCE % : 4.97% (As of Mar. 2024)

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What is Leader Harmonious Drive Systems Co 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. Leader Harmonious Drive Systems Co's annualized ROCE % for the quarter that ended in Mar. 2024 was 4.97%.

Leader Harmonious Drive Systems Co ROCE % Historical Data

The historical data trend for Leader Harmonious Drive Systems Co'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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Leader Harmonious Drive Systems Co ROCE % Chart

Leader Harmonious Drive Systems Co Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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10.35

8.05

12.11

8.74

4.76

Leader Harmonious Drive Systems Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															5.84	5.72	5.14	2.48	4.97

Leader Harmonious Drive Systems Co ROCE % Calculation

Leader Harmonious Drive Systems Co'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 )
	=	101.824	/	( ( (2415.198 - 336.886)	+	(2812.073 - 610.668) )	/ 2 )
	=	101.824	/	( (2078.312	+	2201.405)	/ 2 )
	=	101.824	/	2139.8585
	=	4.76 %

Leader Harmonious Drive Systems Co's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	110.076	/	( ( (2812.073 - 610.668)	+	(2883.267 - 651.723) )	/ 2 )
	=	110.076	/	( ( 2201.405	+	2231.544 )	/ 2 )
	=	110.076	/	2216.4745
	=	4.97 %

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

Leader Harmonious Drive Systems Co (SHSE:688017) 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.

Leader Harmonious Drive Systems Co ROCE % Related Terms

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Leader Harmonious Drive Systems Co (SHSE:688017) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Leader Harmonious Drive Systems Co Ltd (SHSE:688017) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 19, Muxu West Road, Mudu Town, Wuzhong District, Jiangsu Province, Suzhou, CHN, 215101

Website

http://www.leaderdrive.com

Leader Harmonious Drive Systems Co Ltd is engaged in design, production and sales of precision transmission devices. The company's products include harmonic reducers, mechatronics actuators and precision parts. Its products are widely used in high-end manufacturing fields such as industrial robots, service robots, CNC machine tools, aerospace, medical equipment, semiconductor production equipment, and new energy equipment.

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