Spirent Communications (STU:BW8) ROCE % : -3.35% (As of Jun. 2024)

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What is Spirent Communications 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. Spirent Communications's annualized ROCE % for the quarter that ended in Jun. 2024 was -3.35%.

Spirent Communications ROCE % Historical Data

The historical data trend for Spirent Communications'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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Spirent Communications ROCE % Chart

Spirent Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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22.19

19.70

21.52

23.18

4.93

Spirent Communications Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial															16.36	28.99	2.21	8.75	-3.35

Spirent Communications ROCE % Calculation

Spirent Communications'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 )
	=	21.825	/	( ( (665.803 - 179.738)	+	(535.345 - 136.633) )	/ 2 )
	=	21.825	/	( (486.065	+	398.712)	/ 2 )
	=	21.825	/	442.3885
	=	4.93 %

Spirent Communications's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	-13.192	/	( ( (535.345 - 136.633)	+	(528.044 - 139.722) )	/ 2 )
	=	-13.192	/	( ( 398.712	+	388.322 )	/ 2 )
	=	-13.192	/	393.517
	=	-3.35 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

Spirent Communications (STU:BW8) 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.

Spirent Communications ROCE % Related Terms

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Spirent Communications Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Spirent Communications PLC (STU:BW8) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SPNUF:USA SPMYY:USA SPTl:UK SPT:UK BW8:Germany

Address

108 High Street, Origin One, Crawley, West Sussex, GBR, RH10 1BD

Website

https://corporate.spirent.com

Spirent Communications PLC provides communications technologies including networks, data centers, mobile communications, and the Internet of Things. The company operates in Networks and Security and Lifecycle Service Assurance segments. The majority of the revenue is derived from the Networks and Security segment which comprises developing test methodologies, tools, and services for virtualized networks, cloud and artificial intelligence networking infrastructure, application performance, and proactive security validation.

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