Volvo Car AB (CHIX:VOLCBS) ROCE % : 11.36% (As of Mar. 2024)

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What is Volvo Car AB 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. Volvo Car AB's annualized ROCE % for the quarter that ended in Mar. 2024 was 11.36%.

Volvo Car AB ROCE % Historical Data

The historical data trend for Volvo Car AB'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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Volvo Car AB ROCE % Chart

Volvo Car AB Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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12.42

8.29

13.63

12.92

11.66

Volvo Car AB Quarterly Data
	Dec18	Dec19	Jun20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial												12.09	11.95	10.53	12.34	11.36

Volvo Car AB ROCE % Calculation

Volvo Car AB'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 )
	=	21980	/	( ( (330924 - 149378)	+	(356362 - 160996) )	/ 2 )
	=	21980	/	( (181546	+	195366)	/ 2 )
	=	21980	/	188456
	=	11.66 %

Volvo Car AB'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 )
	=	22168	/	( ( (356362 - 160996)	+	(369620 - 174630) )	/ 2 )
	=	22168	/	( ( 195366	+	194990 )	/ 2 )
	=	22168	/	195178
	=	11.36 %

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

Volvo Car AB (CHIX:VOLCBs) 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.

Volvo Car AB ROCE % Related Terms

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Volvo Car AB (CHIX:VOLCBS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Volvo Car AB (CHIX:VOLCBs) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

VLVCY:USA VLVOF:USA VOLCAR B:Sweden 8JO:Germany

Address

VAK Building, Gunnar Engellaus Vag, Gothenburg, SWE, 405 31

Website

https://www.volvocars.com

Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it derives a majority of its revenue from China and also has a presence in the US; Sweden; Germany; United Kingdom; Japan, and South Korea. It generates maximum revenue from the sale of new cars.

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