Ericsson Nikola Tesla dd (ZAG:ERNT) ROCE % : 35.93% (As of Mar. 2024)

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What is Ericsson Nikola Tesla dd 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. Ericsson Nikola Tesla dd's annualized ROCE % for the quarter that ended in Mar. 2024 was 35.93%.

Ericsson Nikola Tesla dd ROCE % Historical Data

The historical data trend for Ericsson Nikola Tesla dd'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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Ericsson Nikola Tesla dd ROCE % Chart

Ericsson Nikola Tesla dd Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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40.81

30.41

26.02

44.19

28.43

Ericsson Nikola Tesla dd Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Mar24
ROCE %	Get a 7-Day Free Trial															17.03	62.72	32.01	54.29	35.93

Ericsson Nikola Tesla dd ROCE % Calculation

Ericsson Nikola Tesla dd's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	17.278	/	( ( (156.827 - 96.399)	+	(162.042 - 100.922) )	/ 2 )
	=	17.278	/	( (60.428	+	61.12)	/ 2 )
	=	17.278	/	60.774
	=	28.43 %

Ericsson Nikola Tesla dd'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: Sep. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Sep. 2023 )		(Q: Mar. 2024 )
	=	31.82	/	( ( (182.78 - 98.761)	+	(184.264 - 91.151) )	/ 2 )
	=	31.82	/	( ( 84.019	+	93.113 )	/ 2 )
	=	31.82	/	88.566
	=	35.93 %

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

Ericsson Nikola Tesla dd (ZAG:ERNT) 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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Ericsson Nikola Tesla dd (ZAG:ERNT) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Ericsson Nikola Tesla dd (ZAG:ERNT) » Definitions » ROCE %

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Address

Krapinska 45, PO Box 93, Zagreb, HRV, 10002

Website

https://www.ericsson.com

Ericsson Nikola Tesla dd is a provider of communication products and services and ICT solutions related to healthcare, national and public safety, state administration, transport, utilities, and multimedia communication. The company's activities include marketing and sales, research and development, design of total communication solutions, services in multi-service and mobile networks area, including mobile Internet and complex system integration in all business areas. It operates in four segments Networks, Digital Services, Managed Services, and Others.

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