Sumitomo Chemical Co (STU:SMM) ROCE % : 13.46% (As of Sep. 2024)

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What is Sumitomo Chemical 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. Sumitomo Chemical Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 13.46%.

Sumitomo Chemical Co ROCE % Historical Data

The historical data trend for Sumitomo Chemical 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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Sumitomo Chemical Co ROCE % Chart

Sumitomo Chemical Co Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROCE %

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6.63

5.60

9.05

1.26

-14.40

Sumitomo Chemical Co 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															-5.85	-2.70	-43.00	7.95	13.46

Sumitomo Chemical Co ROCE % Calculation

Sumitomo Chemical Co's annualized ROCE % for the fiscal year that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2024 )		(A: Mar. 2023 )		(A: Mar. 2024 )
	=	-2553.506	/	( ( (29107.097 - 8932.787)	+	(24162.771 - 8864.107) )	/ 2 )
	=	-2553.506	/	( (20174.31	+	15298.664)	/ 2 )
	=	-2553.506	/	17736.487
	=	-14.40 %

Sumitomo Chemical Co'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 )
	=	2064.044	/	( ( (0 - 0)	+	(23440.061 - 8107.008) )	/ 1 )
	=	2064.044	/	( ( 0	+	15333.053 )	/ 1 )
	=	2064.044	/	15333.053
	=	13.46 %

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

Sumitomo Chemical Co (STU:SMM) 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.

Sumitomo Chemical Co ROCE % Related Terms

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Sumitomo Chemical Co Business Description

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GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Sumitomo Chemical Co Ltd (STU:SMM) » Definitions » ROCE %

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SOMMY:USA SOMMF:USA 4005:Japan

Address

27-1, Shinkawa 2-chome, Chuo-ku, Tokyo, JPN, 104-8260

Website

http://www.sumitomo-chem.co.jp

Sumitomo Chemical Co Ltd manufactures and sells chemicals and chemical-based products. The firm is organized into six segments by product type. The petrochemicals and plastics segment, which generates more revenue than any other segment, sells multiple products including propylene and polypropylene used in automobile seat cushions and interior panels. The pharmaceutical segment sells medicine to treat diabetes, neurology, cancer, and infectious diseases. The IT-related chemicals segment sells compound semiconductors and polarizing films used in LCD displays for TVs and smartphones. The other three segments are health and crop sciences; energy and functional materials; and "others." The majority of revenue comes from Japan and China.