Valens Semiconductor (Valens Semiconductor) ROCE % : -27.96% (As of Mar. 2024)

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What is Valens Semiconductor 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. Valens Semiconductor's annualized ROCE % for the quarter that ended in Mar. 2024 was -27.96%.

Valens Semiconductor ROCE % Historical Data

The historical data trend for Valens Semiconductor'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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Valens Semiconductor ROCE % Chart

Valens Semiconductor Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

-28.61

-20.48

-15.86

-16.05

Valens Semiconductor Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial											-16.64	-10.83	-31.73	-4.30	-27.96

Valens Semiconductor ROCE % Calculation

Valens Semiconductor'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 )
	=	-26.917	/	( ( (195.659 - 24.789)	+	(180.558 - 15.931) )	/ 2 )
	=	-26.917	/	( (170.87	+	164.627)	/ 2 )
	=	-26.917	/	167.7485
	=	-16.05 %

Valens Semiconductor'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 )
	=	-45.156	/	( ( (180.558 - 15.931)	+	(171.277 - 12.893) )	/ 2 )
	=	-45.156	/	( ( 164.627	+	158.384 )	/ 2 )
	=	-45.156	/	161.5055
	=	-27.96 %

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

Valens Semiconductor (NYSE:VLN) 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.

Valens Semiconductor ROCE % Related Terms

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Valens Semiconductor (Valens Semiconductor) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Valens Semiconductor Ltd (NYSE:VLN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 Hanagar Street, PO Box 7152, Hod Hasharon, ISR, 4501309

Website

https://www.valens.com

Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Audio-Video, which includes the company's HDBaseT solutions for the Audio-Video market deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical segments include Israel, China, Hong Kong, the United States, Mexico, Japan, and Others.