Renesas Electronics (TSE:6723) ROCE % : 13.02% (As of Dec. 2023)

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What is Renesas Electronics 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. Renesas Electronics's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.02%.

Renesas Electronics ROCE % Historical Data

The historical data trend for Renesas Electronics'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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Renesas Electronics ROCE % Chart

Renesas Electronics Annual Data

Trend

Mar14

Mar15

Mar16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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0.76

5.35

10.78

19.94

18.55

Renesas Electronics Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															22.95	19.99	17.71	13.02	16.40

Renesas Electronics ROCE % Calculation

Renesas Electronics'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 )
	=	428908	/	( ( (2812491 - 525473)	+	(3167003 - 828725) )	/ 2 )
	=	428908	/	( (2287018	+	2338278)	/ 2 )
	=	428908	/	2312648
	=	18.55 %

Renesas Electronics'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 )
	=	314832	/	( ( (3291158 - 793247)	+	(3167003 - 828725) )	/ 2 )
	=	314832	/	( ( 2497911	+	2338278 )	/ 2 )
	=	314832	/	2418094.5
	=	13.02 %

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

Renesas Electronics (TSE:6723) 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.

Renesas Electronics ROCE % Related Terms

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Renesas Electronics (TSE:6723) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Renesas Electronics Corp (TSE:6723) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RNECY:USA RNECF:USA RNEC:Mexico NEN:Germany

Address

Toyosu Foresia, 3-2-24, Toyosu, Koto-ku, Tokyo, JPN, 135-0061

Website

http://www.renesas.com

Renesas Electronics Corp is a Japan-based company that manufactures and distributes semiconductor components and other products for use in automotive, healthcare, computer peripheral, connectivity, home appliance, and industrial end markets. Its product portfolio includes microcontrollers and microprocessors, embedded systems platform, insulated-gate bipolar transistors, intelligent power devices, thrysistors, transistors, diodes, analog integrated circuits, and optoelectronics products. The firm has operations in Japan, the Americas, Europe, Middle East and Africa, and Asia.

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