Rentokil Initial (LSE:RTO) ROCE % : 8.18% (As of Dec. 2023)

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What is Rentokil Initial 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. Rentokil Initial's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.18%.

Rentokil Initial ROCE % Historical Data

The historical data trend for Rentokil Initial'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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Rentokil Initial ROCE % Chart

Rentokil Initial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.21

10.08

12.35

6.20

7.73

Rentokil Initial 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															13.42	9.36	5.48	7.35	8.18

Rentokil Initial ROCE % Calculation

Rentokil Initial'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 )
	=	682	/	( ( (11942 - 2839)	+	(11127 - 2579) )	/ 2 )
	=	682	/	( (9103	+	8548)	/ 2 )
	=	682	/	8825.5
	=	7.73 %

Rentokil Initial'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 )
	=	708	/	( ( (10992 - 2237)	+	(11127 - 2579) )	/ 2 )
	=	708	/	( ( 8755	+	8548 )	/ 2 )
	=	708	/	8651.5
	=	8.18 %

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

Rentokil Initial (LSE:RTO) 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.

Rentokil Initial ROCE % Related Terms

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Rentokil Initial (LSE:RTO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Rentokil Initial PLC (LSE:RTO) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RTO:USA RKLIF:USA RTOl:UK RTO1:Germany

Address

Manor Royal, Compass House, Crawley, West Sussex, GBR, RH10 9PY

Website

https://www.rentokil-initial.com

Rentokil Initial is a leading global provider of route-based pest-control and commercial hygiene services, operating in 83 countries. The group also offers a range of specialist route-based services including office and commercial space plant care, property care, and workwear rentals. The group has a diverse client base that includes global food producers, hotel chains, industrial goods businesses, restaurants, and individual residential customers.

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