China Telecom (HKSE:00728) ROCE % : 8.68% (As of Mar. 2024)

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What is China Telecom 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. China Telecom's annualized ROCE % for the quarter that ended in Mar. 2024 was 8.68%.

China Telecom ROCE % Historical Data

The historical data trend for China Telecom'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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China Telecom ROCE % Chart

China Telecom Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.31

7.20

7.83

7.02

7.81

China Telecom 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															8.52	12.35	7.03	3.68	8.68

China Telecom ROCE % Calculation

China Telecom'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 )
	=	45664.175	/	( ( (901968.244 - 314619.855)	+	(914195.706 - 331891.89) )	/ 2 )
	=	45664.175	/	( (587348.389	+	582303.816)	/ 2 )
	=	45664.175	/	584826.1025
	=	7.81 %

China Telecom'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 )
	=	50753.972	/	( ( (914195.706 - 331891.89)	+	(922059.196 - 334848.353) )	/ 2 )
	=	50753.972	/	( ( 582303.816	+	587210.843 )	/ 2 )
	=	50753.972	/	584757.3295
	=	8.68 %

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

China Telecom (HKSE:00728) 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.

China Telecom ROCE % Related Terms

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China Telecom (HKSE:00728) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » China Telecom Corp Ltd (HKSE:00728) » Definitions » ROCE %

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ZCH:Germany 601728:China

Address

31 Jinrong Street, Xicheng District, Beijing, CHN, 100033

Website

https://www.chinatelecom-h.com

China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces. It has 102 million fixed-line subscribers, 189 million broadband customers, and 406 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China, with a plan to have 560,000 cabinets by end 2023.

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