Ribbon Communications (FRA:NU42) ROCE % : -12.22% (As of Mar. 2024)

View and export this data going back to 2000. Start your Free Trial

What is Ribbon Communications 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. Ribbon Communications's annualized ROCE % for the quarter that ended in Mar. 2024 was -12.22%.

Ribbon Communications ROCE % Historical Data

The historical data trend for Ribbon Communications'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.

Ribbon Communications ROCE % Chart

Ribbon Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

-18.89

12.13

-18.01

-9.93

-3.16

Ribbon Communications 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															-13.61	-4.40	-0.80	6.68	-12.22

Ribbon Communications ROCE % Calculation

Ribbon Communications'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 )
	=	-25.416	/	( ( (1185.252 - 311.985)	+	(1049.188 - 312.764) )	/ 2 )
	=	-25.416	/	( (873.267	+	736.424)	/ 2 )
	=	-25.416	/	804.8455
	=	-3.16 %

Ribbon Communications'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 )
	=	-77.276	/	( ( (1049.188 - 312.764)	+	(992.183 - 463.97) )	/ 2 )
	=	-77.276	/	( ( 736.424	+	528.213 )	/ 2 )
	=	-77.276	/	632.3185
	=	-12.22 %

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

Ribbon Communications (FRA:NU42) 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.

Ribbon Communications ROCE % Related Terms

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

Ribbon Communications (FRA:NU42) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Ribbon Communications Inc (FRA:NU42) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RBBN:USA NU42:Germany

Address

6500 Chase Oaks Boulevard, Suite 100, Plano, TX, USA, 75023

Website

https://www.ribboncommunications.com

Ribbon Communications Inc provides network solutions primarily to telecommunications, wireless and cable service providers worldwide. It enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. Its solutions enable its customers with a secure way to connect and leverage multivendor, multiprotocol communications systems and applications across their networks and the cloud, around the world and in a rapidly changing ecosystem of IP-enabled devices such as smartphones and tablets.

Ribbon Communications (FRA:NU42) Headlines

No Headlines