Deswell Industries (Deswell Industries) ROCE % : 4.61% (As of Sep. 2023)

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What is Deswell Industries 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. Deswell Industries's annualized ROCE % for the quarter that ended in Sep. 2023 was 4.61%.

Deswell Industries ROCE % Historical Data

The historical data trend for Deswell Industries'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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Deswell Industries ROCE % Chart

Deswell Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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0.49

1.86

2.93

3.18

2.32

Deswell Industries Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial															2.44	3.90	3.02	1.65	4.61

Deswell Industries ROCE % Calculation

Deswell Industries's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	2.102	/	( ( (115.411 - 23.974)	+	(110.379 - 20.246) )	/ 2 )
	=	2.102	/	( (91.437	+	90.133)	/ 2 )
	=	2.102	/	90.785
	=	2.32 %

Deswell Industries's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	4.204	/	( ( (110.379 - 20.246)	+	(111.616 - 19.557) )	/ 2 )
	=	4.204	/	( ( 90.133	+	92.059 )	/ 2 )
	=	4.204	/	91.096
	=	4.61 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

Deswell Industries (NAS:DSWL) 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.

Deswell Industries ROCE % Related Terms

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Deswell Industries (Deswell Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Deswell Industries Inc (NAS:DSWL) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

DW2:Germany

Address

10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC

Website

https://www.deswell.com

Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.