Tempur Sealy International (FRA:TPD) ROCE % : 14.52% (As of Mar. 2024)

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What is Tempur Sealy International 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. Tempur Sealy International's annualized ROCE % for the quarter that ended in Mar. 2024 was 14.52%.

Tempur Sealy International ROCE % Historical Data

The historical data trend for Tempur Sealy International'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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Tempur Sealy International ROCE % Chart

Tempur Sealy International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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16.38

21.88

32.75

21.11

16.96

Tempur Sealy International 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															16.53	17.86	20.95	13.15	14.52

Tempur Sealy International ROCE % Calculation

Tempur Sealy International'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 )
	=	553.868	/	( ( (4115.651 - 926.253)	+	(4175.926 - 832.819) )	/ 2 )
	=	553.868	/	( (3189.398	+	3343.107)	/ 2 )
	=	553.868	/	3266.2525
	=	16.96 %

Tempur Sealy International'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 )
	=	485.024	/	( ( (4175.926 - 832.819)	+	(4218.936 - 881.544) )	/ 2 )
	=	485.024	/	( ( 3343.107	+	3337.392 )	/ 2 )
	=	485.024	/	3340.2495
	=	14.52 %

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

Tempur Sealy International (FRA:TPD) 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.

Tempur Sealy International ROCE % Related Terms

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Tempur Sealy International (FRA:TPD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Tempur Sealy International Inc (FRA:TPD) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TPX:USA

Address

1000 Tempur Way, Lexington, KY, USA, 40511

Website

https://www.tempursealy.com

Tempur Sealy International Inc is one of the world's largest bedding providers. The firm develops and distributes bedding products globally through its North America and international segments (Europe, Asia Pacific, and Latin America). Tempur Sealy's products are divided into the bedding and other product categories. The bedding category comprises the majority of net sales. The primary distribution channels of the company within each segment are retail (including furniture and bedding retailers, department stores, and warehouse clubs) and other (including e-commerce platforms, company-owned stores, and third-party distributors). The majority of net sales is derived from retail. Some major brands of the firm include Tempur, Tempur-Pedic, Sealy, and Stearns and Foster.

Tempur Sealy International (FRA:TPD) Headlines

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