Cochlear (ASX:COH) ROCE % : 26.40% (As of Dec. 2023)

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What is Cochlear 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. Cochlear's annualized ROCE % for the quarter that ended in Dec. 2023 was 26.40%.

Cochlear ROCE % Historical Data

The historical data trend for Cochlear'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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Cochlear ROCE % Chart

Cochlear Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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39.26

-18.76

19.91

20.26

20.67

Cochlear Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															23.00	16.75	19.53	21.40	26.40

Cochlear ROCE % Calculation

Cochlear's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	406	/	( ( (2465.1 - 527.6)	+	(2568.7 - 578) )	/ 2 )
	=	406	/	( (1937.5	+	1990.7)	/ 2 )
	=	406	/	1964.1
	=	20.67 %

Cochlear's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	528.6	/	( ( (2568.7 - 578)	+	(2530.5 - 517.4) )	/ 2 )
	=	528.6	/	( ( 1990.7	+	2013.1 )	/ 2 )
	=	528.6	/	2001.9
	=	26.40 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

Cochlear (ASX:COH) 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.

Cochlear ROCE % Related Terms

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Cochlear (ASX:COH) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Cochlear Ltd (ASX:COH) » Definitions » ROCE %

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CHEOY:USA CHEOF:USA OC5:Germany

Address

1 University Avenue, Macquarie University, Sydney, NSW, AUS, 2109

Website

https://www.cochlear.com

Cochlear is the leading cochlear implant device manufacturer with around 60% global market share. Developed markets contribute 80% of group revenue where cochlear implants are the standard of care for children with severe to profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2020, 49% of revenue came from the Americas, 35% from Europe, the Middle East, and Africa, and 16% from the Asia-Pacific segment.

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