ELM Co (SAU:7203) ROCE % : 32.16% (As of Dec. 2023)

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What is ELM Co 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. ELM Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 32.16%.

ELM Co ROCE % Historical Data

The historical data trend for ELM Co'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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ELM Co ROCE % Chart

ELM Co Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.42

16.65

22.35

30.96

36.89

ELM Co Quarterly Data
	Dec17	Dec18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial														28.38	40.68	43.39	36.29	32.16

ELM Co ROCE % Calculation

ELM Co'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 )
	=	1479.114	/	( ( (6026.386 - 2575.329)	+	(8097.213 - 3529.761) )	/ 2 )
	=	1479.114	/	( (3451.057	+	4567.452)	/ 2 )
	=	1479.114	/	4009.2545
	=	36.89 %

ELM Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	1395.936	/	( ( (7332.68 - 3218.013)	+	(8097.213 - 3529.761) )	/ 2 )
	=	1395.936	/	( ( 4114.667	+	4567.452 )	/ 2 )
	=	1395.936	/	4341.0595
	=	32.16 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

ELM Co (SAU:7203) 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.

ELM Co ROCE % Related Terms

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ELM Co (SAU:7203) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ELM Co (SAU:7203) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Al Thaghr, Al Nakheel Dis Digital City, 6614, Unit No 2, Riyadh, SAU, 12382-4182

Website

https://www.elm.sa

ELM Co is engaged in providing ready-made and customized digital solutions in many areas. Its ready-made solutions serve a broad segment of customers, who can subscribe to different packages of their choosing to meet their needs and suffice business requirements. The services offered by the company include Consulting, Data Analysis, and Technical solutions. The segments are Digital Business, Business Process Outsourcing, and Professional Services, out of which the majority are from the Digital Business segment.

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