Check Point Software Technologies (Check Point Software Technologies) ROCE % : 35.45% (As of Dec. 2023)

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What is Check Point Software Technologies 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. Check Point Software Technologies's annualized ROCE % for the quarter that ended in Dec. 2023 was 35.45%.

Check Point Software Technologies ROCE % Historical Data

The historical data trend for Check Point Software Technologies'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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Check Point Software Technologies ROCE % Chart

Check Point Software Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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21.77

22.46

22.50

23.04

25.52

Check Point Software Technologies 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															30.96	20.82	23.55	24.41	35.45

Check Point Software Technologies ROCE % Calculation

Check Point Software Technologies'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 )
	=	977.9	/	( ( (5724.8 - 1839.2)	+	(5695.5 - 1916.1) )	/ 2 )
	=	977.9	/	( (3885.6	+	3779.4)	/ 2 )
	=	977.9	/	3832.5
	=	25.52 %

Check Point Software Technologies'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 )
	=	1322.4	/	( ( (5401.9 - 1721.5)	+	(5695.5 - 1916.1) )	/ 2 )
	=	1322.4	/	( ( 3680.4	+	3779.4 )	/ 2 )
	=	1322.4	/	3729.9
	=	35.45 %

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

Check Point Software Technologies (NAS:CHKP) 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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Check Point Software Technologies (Check Point Software Technologies) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Check Point Software Technologies Ltd (NAS:CHKP) » Definitions » ROCE %

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CHKPN:Mexico CPW:Germany

Address

5 Shlomo Kaplan Street, Tel Aviv, ISR, 6789159

Website

https://www.checkpoint.com

Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.