Resideo Technologies (FRA:3RT) ROCE % : 6.72% (As of Mar. 2024)

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What is Resideo Technologies 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. Resideo Technologies's annualized ROCE % for the quarter that ended in Mar. 2024 was 6.72%.

Resideo Technologies ROCE % Historical Data

The historical data trend for Resideo Technologies'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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Resideo Technologies ROCE % Chart

Resideo Technologies Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.98

4.07

9.83

10.57

7.48

Resideo Technologies 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															7.98	8.88	4.27	9.08	6.72

Resideo Technologies ROCE % Calculation

Resideo Technologies'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 )
	=	346.626	/	( ( (6029.328 - 1459.424)	+	(6093.465 - 1398.425) )	/ 2 )
	=	346.626	/	( (4569.904	+	4695.04)	/ 2 )
	=	346.626	/	4632.472
	=	7.48 %

Resideo Technologies'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 )
	=	316.48	/	( ( (6093.465 - 1398.425)	+	(5998.4 - 1274.2) )	/ 2 )
	=	316.48	/	( ( 4695.04	+	4724.2 )	/ 2 )
	=	316.48	/	4709.62
	=	6.72 %

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

Resideo Technologies (FRA:3RT) 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.

Resideo Technologies ROCE % Related Terms

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Resideo Technologies (FRA:3RT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Resideo Technologies Inc (FRA:3RT) » Definitions » ROCE %

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REZI:USA

Address

16100 North 71st Street, Suite 550, Scottsdale, AZ, USA, 85254

Website

https://www.resideo.com

Resideo Technologies Inc is a manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions. The company has two reportable segments; Products and Solutions segment offers temperature and humidity control, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, and ADI Global Distribution segment includes wholesale distributor of low-voltage security products including access control, fire detection, security, and video products. It derives a majority of its revenue from the United States.

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