PPG Industries (WBO:PPG) ROCE % : 16.01% (As of Sep. 2024)

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What is PPG Industries 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. PPG Industries's annualized ROCE % for the quarter that ended in Sep. 2024 was 16.01%.

PPG Industries ROCE % Historical Data

The historical data trend for PPG Industries'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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PPG Industries ROCE % Chart

PPG Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.52

10.23

12.80

9.81

12.06

PPG Industries 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															15.08	5.97	14.18	18.16	16.01

PPG Industries ROCE % Calculation

PPG Industries'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 )
	=	1829.415	/	( ( (19582.336 - 4456.624)	+	(19850.299 - 4634.518) )	/ 2 )
	=	1829.415	/	( (15125.712	+	15215.781)	/ 2 )
	=	1829.415	/	15170.7465
	=	12.06 %

PPG Industries'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 )
	=	2443.512	/	( ( (20186.241 - 4854.025)	+	(19694.058 - 4501.396) )	/ 2 )
	=	2443.512	/	( ( 15332.216	+	15192.662 )	/ 2 )
	=	2443.512	/	15262.439
	=	16.01 %

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

PPG Industries (WBO:PPG) 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.

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PPG Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » PPG Industries Inc (WBO:PPG) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

PPG:USA PPG:Mexico 0KEI:UK PPQ:Germany

Address

One PPG Place, Pittsburgh, PA, USA, 15272

Website

https://www.ppg.com

PPG is a global producer of coatings. The company is the world's largest producer of coatings after the purchase of selected Akzo Nobel assets. PPG's products are sold to a wide variety of end users, including the automotive, aerospace, construction, and industrial markets. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years. PPG is focused on its coatings and specialty products and expansion into emerging regions, as exemplified by the Comex acquisition.