Visa (WBO:VISA) ROCE % : 37.81% (As of Sep. 2024)

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What is Visa 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. Visa's annualized ROCE % for the quarter that ended in Sep. 2024 was 37.81%.

Visa ROCE % Historical Data

The historical data trend for Visa'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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Visa ROCE % Chart

Visa Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROCE %

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22.06

24.84

30.82

31.63

35.57

Visa 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															34.64	36.20	32.55	36.19	37.81

Visa ROCE % Calculation

Visa's annualized ROCE % for the fiscal year that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	22125.857	/	( ( (84797.563 - 21642.826)	+	(85154.411 - 23891.817) )	/ 2 )
	=	22125.857	/	( (63154.737	+	61262.594)	/ 2 )
	=	22125.857	/	62208.6655
	=	35.57 %

Visa'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 )
	=	23598.992	/	( ( (84576.16 - 21006.548)	+	(85154.411 - 23891.817) )	/ 2 )
	=	23598.992	/	( ( 63569.612	+	61262.594 )	/ 2 )
	=	23598.992	/	62416.103
	=	37.81 %

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

Visa (WBO:VISA) 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.

Visa ROCE % Related Terms

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Visa Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Visa Inc (WBO:VISA) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

V:USA VISA:Poland V:Peru V:Mexico 1V:Italy 3V64d:UK 3V64:Germany VISA:Canada VISA34:Brazil V:Argentina

Address

P.O. Box 8999, San Francisco, CA, USA, 94128-8999

Website

https://www.usa.visa.com

Visa is the largest payment processor in the world. In fiscal 2023, it processed almost $15 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.

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