Kumho Tire Co (LSE:KHTC) ROCE % : 22.63% (As of Dec. 2023)

View and export this data going back to 2005. Start your Free Trial

What is Kumho Tire Co 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. Kumho Tire Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 22.63%.

Kumho Tire Co ROCE % Historical Data

The historical data trend for Kumho Tire Co'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.

* Premium members only.

Kumho Tire Co ROCE % Chart

Kumho Tire Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

1.87

-0.06

0.16

0.70

15.01

Kumho Tire Co 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															5.98	9.42	14.19	13.32	22.63

Kumho Tire Co ROCE % Calculation

Kumho Tire Co'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 )
	=	305.817	/	( ( (3629.499 - 1811.15)	+	(3703.62 - 1446.136) )	/ 2 )
	=	305.817	/	( (1818.349	+	2257.484)	/ 2 )
	=	305.817	/	2037.9165
	=	15.01 %

Kumho Tire Co'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 )
	=	508.4	/	( ( (3675.127 - 1439.911)	+	(3703.62 - 1446.136) )	/ 2 )
	=	508.4	/	( ( 2235.216	+	2257.484 )	/ 2 )
	=	508.4	/	2246.35
	=	22.63 %

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

Kumho Tire Co (LSE:KHTC) 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.

Kumho Tire Co ROCE % Related Terms

Thank you for viewing the detailed overview of Kumho Tire Co's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Kumho Tire Co (LSE:KHTC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Kumho Tire Co Inc (LSE:KHTC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

073240:Korea

Address

Kumho Asiana Main Building, 115 Sinmunro 1-Ga, Jongno-Gu, Seoul, KOR

Website

http://www.kumhotire.co.kr

Kumho Tire Co Inc is a global tire company originally from South Korea. The company offers car tires, light truck and SUV tires, competition racing tires, and medium commercial truck tires. The company has manufacturing facilities and plants in South Korea, China, Vietnam, and the United States.

Kumho Tire Co (LSE:KHTC) Headlines

No Headlines