Federated Hermes (FRA:3KC) ROCE % : 23.28% (As of Mar. 2024)

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What is Federated Hermes 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. Federated Hermes's annualized ROCE % for the quarter that ended in Mar. 2024 was 23.28%.

Federated Hermes ROCE % Historical Data

The historical data trend for Federated Hermes'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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Federated Hermes ROCE % Chart

Federated Hermes Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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23.35

24.92

22.14

18.66

23.36

Federated Hermes 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															21.43	22.82	23.00	26.19	23.28

Federated Hermes ROCE % Calculation

Federated Hermes'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 )
	=	388.671	/	( ( (1907.332 - 242.998)	+	(1927.391 - 263.494) )	/ 2 )
	=	388.671	/	( (1664.334	+	1663.897)	/ 2 )
	=	388.671	/	1664.1155
	=	23.36 %

Federated Hermes's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	394.376	/	( ( (1927.391 - 263.494)	+	(1920.014 - 195.499) )	/ 2 )
	=	394.376	/	( ( 1663.897	+	1724.515 )	/ 2 )
	=	394.376	/	1694.206
	=	23.28 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Federated Hermes (FRA:3KC) 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.

Federated Hermes ROCE % Related Terms

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Federated Hermes (FRA:3KC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Federated Hermes Inc (FRA:3KC) » Definitions » ROCE %

Comparable Companies

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FHI:USA

Address

1001 Liberty Avenue, Pittsburgh, PA, USA, 15222-3779

Website

https://www.federatedhermes.com

Federated provides asset management services for institutional and individual investors. The company had $715.2 billion in managed assets at the end of September 2023, composed of equity (11%), multi-asset (less than 1%), fixed-income (13%), alternative (3%), and money market (73%) funds. That said, the firm's cash-management operations are expected to generate around 46% of Federated's revenue this year, compared with 31%, 12%, and 11%, respectively, for the firm's equity, fixed-income, and alternatives/multi-asset operations. From a channel perspective, the company's products are distributed via trust banks, wealth managers and retail broker/dealers (63% of AUM), institutional investors (27%), and international clients (10%).

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