Hon Hai Precision Industry Co (TPE:2317) ROCE % : 16.30% (As of Dec. 2023)

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What is Hon Hai Precision Industry 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. Hon Hai Precision Industry Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 16.30%.

Hon Hai Precision Industry Co ROCE % Historical Data

The historical data trend for Hon Hai Precision Industry 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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Hon Hai Precision Industry Co ROCE % Chart

Hon Hai Precision Industry Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.25

10.86

11.75

11.31

12.73

Hon Hai Precision Industry Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															12.90	7.12	13.33	15.02	16.30

Hon Hai Precision Industry Co ROCE % Calculation

Hon Hai Precision Industry 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 )
	=	257767.474	/	( ( (4133974.28 - 2113813.519)	+	(3939788.977 - 1909334.694) )	/ 2 )
	=	257767.474	/	( (2020160.761	+	2030454.283)	/ 2 )
	=	257767.474	/	2025307.522
	=	12.73 %

Hon Hai Precision Industry 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 )
	=	332548.892	/	( ( (4063389.195 - 2012985.561)	+	(3939788.977 - 1909334.694) )	/ 2 )
	=	332548.892	/	( ( 2050403.634	+	2030454.283 )	/ 2 )
	=	332548.892	/	2040428.9585
	=	16.30 %

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

Hon Hai Precision Industry Co (TPE:2317) 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.

Hon Hai Precision Industry Co ROCE % Related Terms

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Hon Hai Precision Industry Co (TPE:2317) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Hon Hai Precision Industry Co Ltd (TPE:2317) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HNHPF:USA HHPDl:UK HHPD:UK HHP2:Germany

Address

No.2, Zihyou Street, Tucheng District, New Taipei, TWN, 236

Website

https://www.foxconn.com

Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for 55% of overall revenue in 2022. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.

Hon Hai Precision Industry Co (TPE:2317) Headlines

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