Alcon (ALC) ROCE %

: 3.17% (As of Dec. 2023)

View and export this data going back to 2019. Start your Free Trial

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. Alcon's annualized ROCE % for the quarter that ended in Dec. 2023 was 3.17%.

Alcon ROCE % Historical Data

The historical data trend for Alcon'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.

* Premium members only.

Alcon Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

-0.87

-2.02

2.12

2.30

3.81

Alcon 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															0.14	3.94	-	-	3.17

Alcon ROCE % Calculation

Alcon'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 )
	=	1021	/	( ( (29165 - 2738)	+	(29614 - 2480) )	/ 2 )
	=	1021	/	( (26427	+	27134)	/ 2 )
	=	1021	/	26780.5
	=	3.81 %

Alcon'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 )
	=	860	/	( ( (0 - 0)	+	(29614 - 2480) )	/ 1 )
	=	860	/	( ( 0	+	27134 )	/ 1 )
	=	860	/	27134
	=	3.17 %

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

Alcon (NYSE:ALC) 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.

Alcon ROCE % Related Terms

Thank you for viewing the detailed overview of Alcon's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Alcon (ALC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Alcon Inc (NYSE:ALC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ALC:Mexico ALCz:UK 0A0D:UK ALC:Switzerland

Address

Chemin de Blandonnet 8, Royce Bedward, Vernier, Geneva, CHE, 1214

Website

https://www.alcon.com

Alcon is one of the leading visioncare companies in the world. Following nine years as a Novartis subsidiary, it was spun off as a public company in April 2019. Alcon operates in two segments: visioncare and surgical. Visioncare comprises contact lenses, lenscare solutions, and a suite of ocular health products. With brands like Dailies, Total1, and Air Optix, Alcon controls one fourth of the U.S. contact lens market. Surgical comprises intraocular lenses, ophthalmic surgical equipment, and consumables used during surgeries. Its main products include Centurion, a phacoemulsification device used during cataract surgeries, and a portfolio of IOLs including PanOptix and Vivity. Alcon has one of the largest installed bases of eye surgical equipment in the world.