New Oriental Education & Technology Group (New Oriental Education & Technology Group) ROCE % : 10.05% (As of Feb. 2024)

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What is New Oriental Education & Technology Group 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. New Oriental Education & Technology Group's annualized ROCE % for the quarter that ended in Feb. 2024 was 10.05%.

New Oriental Education & Technology Group ROCE % Historical Data

The historical data trend for New Oriental Education & Technology Group'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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New Oriental Education & Technology Group ROCE % Chart

New Oriental Education & Technology Group Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

ROCE %

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13.05

14.66

5.98

-18.69

7.31

New Oriental Education & Technology Group Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															6.40	16.02	19.42	1.95	10.05

New Oriental Education & Technology Group ROCE % Calculation

New Oriental Education & Technology Group's annualized ROCE % for the fiscal year that ended in May. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2023 )		(A: May. 2022 )		(A: May. 2023 )
	=	309.238	/	( ( (6034.666 - 1710.114)	+	(6392.458 - 2250.978) )	/ 2 )
	=	309.238	/	( (4324.552	+	4141.48)	/ 2 )
	=	309.238	/	4233.016
	=	7.31 %

New Oriental Education & Technology Group's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	453.728	/	( ( (7131.494 - 2664.907)	+	(7189.543 - 2627.888) )	/ 2 )
	=	453.728	/	( ( 4466.587	+	4561.655 )	/ 2 )
	=	453.728	/	4514.121
	=	10.05 %

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

New Oriental Education & Technology Group (NYSE:EDU) 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.

New Oriental Education & Technology Group ROCE % Related Terms

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New Oriental Education & Technology Group (New Oriental Education & Technology Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » New Oriental Education & Technology Group Inc (NYSE:EDU) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

EDUN:Mexico 09901:Hong Kong 0K75:UK N1U0:Germany E1DU34:Brazil

Address

No. 6 Hai Dian Zhong Street, Haidian District, Beijing, CHN, 100080

Website

https://www.neworiental.org

New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental's revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. It also owns 55.7% of East Buy (HKG: 01797), a market leader in livestreaming e-commerce.