IHS Markit (IHS Markit) ROCE % : 21.27% (As of Nov. 2021)

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What is IHS Markit 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. IHS Markit's annualized ROCE % for the quarter that ended in Nov. 2021 was 21.27%.

IHS Markit ROCE % Historical Data

The historical data trend for IHS Markit'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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IHS Markit ROCE % Chart

IHS Markit Annual Data

Trend

Nov12

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

ROCE %

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4.18

4.93

7.20

7.92

11.01

IHS Markit Quarterly Data
	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21
ROCE %	Get a 7-Day Free Trial															4.86	6.56	7.65	8.04	21.27

IHS Markit ROCE % Calculation

IHS Markit's annualized ROCE % for the fiscal year that ended in Nov. 2021 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Nov. 2021 )		(A: Nov. 2020 )		(A: Nov. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Nov. 2021 )		(A: Nov. 2020 )		(A: Nov. 2021 )
	=	1561.7	/	( ( (16135.2 - 1978.8)	+	(16913.9 - 2712.3) )	/ 2 )
	=	1561.7	/	( (14156.4	+	14201.6)	/ 2 )
	=	1561.7	/	14179
	=	11.01 %

IHS Markit's ROCE % of for the quarter that ended in Nov. 2021 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Nov. 2021 )		(Q: Aug. 2021 )		(Q: Nov. 2021 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Nov. 2021 )		(Q: Aug. 2021 )		(Q: Nov. 2021 )
	=	3046.8	/	( ( (16496.5 - 2048.5)	+	(16913.9 - 2712.3) )	/ 2 )
	=	3046.8	/	( ( 14448	+	14201.6 )	/ 2 )
	=	3046.8	/	14324.8
	=	21.27 %

(1) Note: The EBIT data used here is four times the quarterly (Nov. 2021) EBIT data.

IHS Markit (NYSE:INFO) 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.

IHS Markit ROCE % Related Terms

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IHS Markit (IHS Markit) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » IHS Markit Ltd (NYSE:INFO) » Definitions » ROCE %

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Address

25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY

Website

https://www.ihsmarkit.com

IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.