ITT (FRA:2II) ROCE % : 16.87% (As of Dec. 2023)

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What is ITT 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. ITT's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.87%.

ITT ROCE % Historical Data

The historical data trend for ITT'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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ITT ROCE % Chart

ITT Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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11.59

9.21

14.08

18.48

19.04

ITT Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															23.31	18.87	21.08	21.09	16.87

ITT ROCE % Calculation

ITT'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 )
	=	485.918	/	( ( (3568.603 - 1119.112)	+	(3606.194 - 951.663) )	/ 2 )
	=	485.918	/	( (2449.491	+	2654.531)	/ 2 )
	=	485.918	/	2552.011
	=	19.04 %

ITT'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	441.992	/	( ( (3562.755 - 978.228)	+	(3606.194 - 951.663) )	/ 2 )
	=	441.992	/	( ( 2584.527	+	2654.531 )	/ 2 )
	=	441.992	/	2619.529
	=	16.87 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

ITT (FRA:2II) 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.

ITT ROCE % Related Terms

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ITT (FRA:2II) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ITT Inc (FRA:2II) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ITT:USA 2II:Germany

Address

100 Washington Boulevard, 6th Floor, Stamford, CT, USA, 06902

Website

https://www.itt.com

ITT is a diversified industrial conglomerate with over $3 billion in sales. After the spinoffs of Xylem and Exelis in 2011, the company's products primarily include brake pads, shock absorbers, pumps, valves, connectors, and switches. Its customers include original-equipment and Tier 1 manufacturers as well as aftermarket customers. ITT uses a network of approximately 700 independent distributors, which accounts for about one third of overall revenue. Nearly three fourths of the company's sales are made in North America and Europe. ITT's primary end markets include automotive, rail, oil and gas, aerospace and defense, chemical, mining, and general industrial.

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