Advantech Co (TPE:2395) ROCE % : 19.25% (As of Mar. 2024)

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What is Advantech 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. Advantech Co's annualized ROCE % for the quarter that ended in Mar. 2024 was 19.25%.

Advantech Co ROCE % Historical Data

The historical data trend for Advantech 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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Advantech Co ROCE % Chart

Advantech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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27.75

24.87

25.86

30.19

26.38

Advantech 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															31.87	32.71	25.13	21.08	19.25

Advantech Co ROCE % Calculation

Advantech 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 )
	=	13312.253	/	( ( (66384.938 - 18480.816)	+	(69056.272 - 16026.807) )	/ 2 )
	=	13312.253	/	( (47904.122	+	53029.465)	/ 2 )
	=	13312.253	/	50466.7935
	=	26.38 %

Advantech 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 )
	=	9678.732	/	( ( (69056.272 - 16026.807)	+	(71045.9 - 23530.66) )	/ 2 )
	=	9678.732	/	( ( 53029.465	+	47515.24 )	/ 2 )
	=	9678.732	/	50272.3525
	=	19.25 %

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

Advantech Co (TPE:2395) 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.

Advantech Co ROCE % Related Terms

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Advantech Co (TPE:2395) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Advantech Co Ltd (TPE:2395) » Definitions » ROCE %

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N/A

Address

No. 1, Alley 20, Lane 26, Rueiguang Road, Neihu District, Taipei, TWN, 114519

Website

https://www.advantech.com

Founded in 1981, Advantech is the world's largest industrial PC, or IPC, supplier, offering single-board computers, fanless IPCs, digital posts and more. The company reports three segments: embedded PCs, industry PC and automation solutions, and service and others. They contributed 50%, 39% and 11% revenue in 2022, respectively. Leveraging its presence in 27 countries, Advantech is expanding into Internet of Things verticals like smart retail, medical, transportation, industrial automation and energy by investing in Internet of Things solution partners and its proprietary WISE-PaaS platform. The headquarters is in Taipei, Taiwan. The company maintains most manufacturing facilities in Taiwan and Kunshan, China; and has 14 service centers globally.

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