TSEM (Tower Semiconductor) ROCE % : 8.20% (As of Sep. 2024)

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What is Tower Semiconductor 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. Tower Semiconductor's annualized ROCE % for the quarter that ended in Sep. 2024 was 8.20%.

Tower Semiconductor ROCE % Historical Data

The historical data trend for Tower Semiconductor'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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Tower Semiconductor ROCE % Chart

Tower Semiconductor Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.99

5.45

8.60

14.47

24.54

Tower Semiconductor 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															8.09	66.40	5.13	7.34	8.20

Tower Semiconductor ROCE % Calculation

Tower Semiconductor'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 )
	=	589.286	/	( ( (2547.608 - 387.388)	+	(2918.517 - 276.838) )	/ 2 )
	=	589.286	/	( (2160.22	+	2641.679)	/ 2 )
	=	589.286	/	2400.9495
	=	24.54 %

Tower Semiconductor'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 )
	=	223.048	/	( ( (2962.167 - 290.175)	+	(3059.829 - 294.571) )	/ 2 )
	=	223.048	/	( ( 2671.992	+	2765.258 )	/ 2 )
	=	223.048	/	2718.625
	=	8.20 %

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

Tower Semiconductor (NAS:TSEM) 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.

Tower Semiconductor ROCE % Related Terms

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Tower Semiconductor Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Tower Semiconductor Ltd (NAS:TSEM) » Definitions » ROCE %

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TSEM:Israel TOW:Germany TOW:Germany

Address

20 Shaul Amor Avenue, P.O. Box 619, Ramat Gavriel Industrial Park, Migdal Haemek, ISR, 2310502

Website

https://www.towersemi.com

Tower Semiconductor Ltd is a pure-play specialty foundry that manufactures semiconductors. As a pure-play foundry, it focuses on producing integrated circuits (ICs), based on the design specifications of customers. The company's line of integrated circuits is incorporated into a range of products and markets, including consumer electronics, personal computers, communications, automotive, and industrial and medical device products. Tower produces ICs alongside wholly-owned subsidiaries through fabrication facilities located in Japan. As a complement to its technology offerings, Tower offers services that enable a quick and accurate design cycle. To further assist customers with design and technical support, an integrated team helps clients through the manufacturing cycle.