Signify NV (WBO:LGHT) ROCE % : 6.33% (As of Mar. 2024)

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What is Signify NV 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. Signify NV's annualized ROCE % for the quarter that ended in Mar. 2024 was 6.33%.

Signify NV ROCE % Historical Data

The historical data trend for Signify NV'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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Signify NV ROCE % Chart

Signify NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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9.19

8.32

9.86

12.99

6.44

Signify NV 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															4.49	6.96	10.85	4.08	6.33

Signify NV ROCE % Calculation

Signify NV'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 )
	=	351	/	( ( (8286 - 2367)	+	(8004 - 3027) )	/ 2 )
	=	351	/	( (5919	+	4977)	/ 2 )
	=	351	/	5448
	=	6.44 %

Signify NV'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 )
	=	316	/	( ( (8004 - 3027)	+	(8221 - 3218) )	/ 2 )
	=	316	/	( ( 4977	+	5003 )	/ 2 )
	=	316	/	4990
	=	6.33 %

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

Signify NV (WBO:LGHT) 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.

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Signify NV (WBO:LGHT) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Signify NV (WBO:LGHT) » Definitions » ROCE %

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SFFYF:USA PHPPY:USA LIGHT:Netherlands LIGHT:Mexico LIGHTa:UK 0RHI:UK G14:Germany

Address

High Tech Campus 48, Eindhoven, NLD, 5656 AE

Website

https://www.signify.com

Signify NV is a Netherlands-based firm that provides lighting solutions. The company's product portfolio includes luminaires, lamps, light-emitting diode (LED) lamps, LED tubes, and decorative lighting. Its product application is very broad-based as it is used in almost every industry. The operating segments are Digital Solutions, Digital Products, and Conventional Products. The firm generates of its revenues from its Digital Solutions segment and operates mainly in Europe, the Americas, as well as other international markets.