Element Solutions (FRA:PLQ) ROCE % : 7.28% (As of Mar. 2024)

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What is Element Solutions 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. Element Solutions's annualized ROCE % for the quarter that ended in Mar. 2024 was 7.28%.

Element Solutions ROCE % Historical Data

The historical data trend for Element Solutions'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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Element Solutions ROCE % Chart

Element Solutions Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.83

3.37

7.12

7.19

3.84

Element Solutions 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															6.23	5.15	-0.27	4.29	7.28

Element Solutions ROCE % Calculation

Element Solutions'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 )
	=	163.593	/	( ( (4629.093 - 325.114)	+	(4561.25 - 338.74) )	/ 2 )
	=	163.593	/	( (4303.979	+	4222.51)	/ 2 )
	=	163.593	/	4263.2445
	=	3.84 %

Element Solutions'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 )
	=	306.912	/	( ( (4561.25 - 338.74)	+	(4519.224 - 313.628) )	/ 2 )
	=	306.912	/	( ( 4222.51	+	4205.596 )	/ 2 )
	=	306.912	/	4214.053
	=	7.28 %

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

Element Solutions (FRA:PLQ) 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.

Element Solutions ROCE % Related Terms

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Element Solutions (FRA:PLQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Element Solutions Inc (FRA:PLQ) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ESI:USA PLQ:Germany

Address

500 East Broward Boulevard, Suite 1860, Fort Lauderdale, FL, USA, 33394

Website

https://www.elementsolutionsinc.com

Element Solutions Inc is a specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. The company has two segments which are Electronics and Industrial & Specialty. The Industrial & Specialty segment researches, formulates and sells specialty chemicals and process technologies that enhance surfaces or improve industrial processes in diverse industrial sectors from automotive trim to transcontinental infrastructure and from high-speed printing to high-design faucets. The electronics segment researches, formulates and sells specialty chemicals and material process technologies for all types of electronics hardware, from complex printed circuit board designs to semiconductor packaging.

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