Sodexo (XPAR:SW) ROCE % : 12.71% (As of Feb. 2024)

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What is Sodexo 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. Sodexo's annualized ROCE % for the quarter that ended in Feb. 2024 was 12.71%.

Sodexo ROCE % Historical Data

The historical data trend for Sodexo'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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Sodexo ROCE % Chart

Sodexo Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROCE %

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12.92

-0.75

3.53

7.67

8.02

Sodexo Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
ROCE %	Get a 7-Day Free Trial															10.28	5.34	9.69	6.74	12.71

Sodexo ROCE % Calculation

Sodexo's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	908	/	( ( (20920 - 9272)	+	(20794 - 9800) )	/ 2 )
	=	908	/	( (11648	+	10994)	/ 2 )
	=	908	/	11321
	=	8.02 %

Sodexo's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Aug. 2023 )		(Q: Feb. 2024 )
	=	1372	/	( ( (20794 - 9800)	+	(15596 - 5007) )	/ 2 )
	=	1372	/	( ( 10994	+	10589 )	/ 2 )
	=	1372	/	10791.5
	=	12.71 %

(1) Note: The EBIT data used here is two times the semi-annual (Feb. 2024) EBIT data.

Sodexo (XPAR:SW) 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.

Sodexo ROCE % Related Terms

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Sodexo (XPAR:SW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Sodexo (XPAR:SW) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SDXOF:USA SDXAY:USA SWp:UK 0J3F:UK SJ7:Germany

Address

255 Quai de la Bataille de Stalingrad, Issy-les-Moulineaux (Hauts-de-Seine), Cedex 9, Paris, FRA, 92130

Website

http://www.sodexo.com

Sodexo is one of the largest food service companies globally, operating in more than 80 countries with annual sales of over EUR 21 billion. Sodexo's model stems from operating on-premise catering facilities, rather than centralised industrial kitchens. While food services remains the largest business segment (58% of revenue in 2022), the company has actively pursued a strategy of diversifying its business activities into other areas, such as facilities-management services, which now represents 38% of group revenue.

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