Marsh & McLennan (FRA:MSN) ROCE % : 28.46% (As of Mar. 2024)

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What is Marsh & McLennan 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. Marsh & McLennan's annualized ROCE % for the quarter that ended in Mar. 2024 was 28.46%.

Marsh & McLennan ROCE % Historical Data

The historical data trend for Marsh & McLennan'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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Marsh & McLennan ROCE % Chart

Marsh & McLennan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.47

12.36

17.78

17.41

20.27

Marsh & McLennan 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															27.17	22.87	16.00	17.06	28.46

Marsh & McLennan ROCE % Calculation

Marsh & McLennan'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 )
	=	5138.868	/	( ( (41643.616 - 16833.408)	+	(44043.51 - 18152.015) )	/ 2 )
	=	5138.868	/	( (24810.208	+	25891.495)	/ 2 )
	=	5138.868	/	25350.8515
	=	20.27 %

Marsh & McLennan'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 )
	=	7470.4	/	( ( (44043.51 - 18152.015)	+	(43766.24 - 17167.2) )	/ 2 )
	=	7470.4	/	( ( 25891.495	+	26599.04 )	/ 2 )
	=	7470.4	/	26245.2675
	=	28.46 %

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

Marsh & McLennan (FRA:MSN) 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.

Marsh & McLennan ROCE % Related Terms

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Marsh & McLennan (FRA:MSN) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Marsh & McLennan Companies Inc (FRA:MSN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

MMC:USA MMC:Mexico MSN:Germany M1MC34:Brazil MMCO:Austria MMC:Argentina

Address

1166 Avenue of the Americas, New York, NY, USA, 10036-2774

Website

https://www.marshmclennan.com

Marsh McLennan is a professional services firm that provides advice and solutions in the areas of risk, strategy, and human capital. The company operates through two main segments: risk and insurance services and consulting. In risk and insurance services, the firm offers services via Marsh (an insurance broker) and Guy Carpenter (a risk and reinsurance specialist). The consulting division comprises Mercer (a provider of human resource services) and Oliver Wyman (a management and economic consultancy). About half of its revenue is generated outside the U.S.