On Holding AG (On Holding AG) ROCE % : -13.95% (As of Dec. 2023)

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What is On Holding AG 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. On Holding AG's annualized ROCE % for the quarter that ended in Dec. 2023 was -13.95%.

On Holding AG ROCE % Historical Data

The historical data trend for On Holding AG'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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On Holding AG ROCE % Chart

On Holding AG Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

4.17

-13.13

-23.49

7.53

6.49

On Holding AG Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial											-8.47	18.28	-1.79	22.84	-13.95

On Holding AG ROCE % Calculation

On Holding AG'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 )
	=	87.997	/	( ( (1483.899 - 260.52)	+	(1842.044 - 353.377) )	/ 2 )
	=	87.997	/	( (1223.379	+	1488.667)	/ 2 )
	=	87.997	/	1356.023
	=	6.49 %

On Holding AG'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 )
	=	-207.216	/	( ( (1895.731 - 414.184)	+	(1842.044 - 353.377) )	/ 2 )
	=	-207.216	/	( ( 1481.547	+	1488.667 )	/ 2 )
	=	-207.216	/	1485.107
	=	-13.95 %

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

On Holding AG (NYSE:ONON) 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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On Holding AG (On Holding AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » On Holding AG (NYSE:ONON) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Forrlibuckstrasse 190, Zurich, CHE, 8005

Website

https://www.on-running.com

On Holding AG is a premium performance sports brand rooted in technology, design, and impact. Its shoe, apparel, and accessories products are designed primarily for athletic use, casual, or leisure purposes. It does not manufacture the products or the raw materials and rely instead on third-party suppliers and contract manufacturers. Geographically, it derives a majority of its revenue from North America.