LG Electronics (XKRX:066570) ROCE % : 0.76% (As of Dec. 2023)

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What is LG Electronics 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. LG Electronics's annualized ROCE % for the quarter that ended in Dec. 2023 was 0.76%.

LG Electronics ROCE % Historical Data

The historical data trend for LG Electronics'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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LG Electronics ROCE % Chart

LG Electronics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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3.44

12.95

14.10

9.26

7.09

LG Electronics 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															-5.36	12.55	6.02	8.78	0.76

LG Electronics ROCE % Calculation

LG Electronics'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 )
	=	2441945	/	( ( (55156141 - 22332549)	+	(60240793 - 24160380) )	/ 2 )
	=	2441945	/	( (32823592	+	36080413)	/ 2 )
	=	2441945	/	34452002.5
	=	7.09 %

LG Electronics'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 )
	=	275720	/	( ( (61903092 - 25114951)	+	(60240793 - 24160380) )	/ 2 )
	=	275720	/	( ( 36788141	+	36080413 )	/ 2 )
	=	275720	/	36434277
	=	0.76 %

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

LG Electronics (XKRX:066570) 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.

LG Electronics ROCE % Related Terms

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LG Electronics (XKRX:066570) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » LG Electronics Inc (XKRX:066570) » Definitions » ROCE %

Traded in Other Exchanges

066575:Korea LGLD:UK LGLG:Germany

Address

Twin Tower 128, Yeoui-daero, Yeongdeungpo-gu, Seoul, KOR, 07336

Website

https://www.lge.co.kr

LG Electronics Inc is a South Korea-based company that produces a broad range of electronic products. Its businesses are the home entertainment segment, which produces and sells TVs and digital media products; the mobile communications segment, which produces and sells mobile communications equipment; the home appliance and air solutions segment, which produces and sells washing machines, refrigerators, and other products; the vehicle components segment, which designs and produces vehicle parts; the business solutions segment, which manufactures and sells PCs, solar panels, and other products; and Innotek, which sells substrates, sensors, and other items. The company generates the majority of total revenue from the home entertainment and home appliance and air solutions segments.

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