Linear Technology (Linear Technology) ROCE % : 32.76% (As of Dec. 2016)

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What is Linear Technology 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. Linear Technology's annualized ROCE % for the quarter that ended in Dec. 2016 was 32.76%.

Linear Technology ROCE % Historical Data

The historical data trend for Linear Technology'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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Linear Technology ROCE % Chart

Linear Technology Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

ROCE %

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37.29

41.93

51.13

43.63

35.81

Linear Technology Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROCE %	Get a 7-Day Free Trial															34.25	36.01	38.40	31.51	32.76

Linear Technology ROCE % Calculation

Linear Technology's annualized ROCE % for the fiscal year that ended in Jun. 2016 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2016 )		(A: Jun. 2015 )		(A: Jun. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2016 )		(A: Jun. 2015 )		(A: Jun. 2016 )
	=	639.449	/	( ( (1884.079 - 182.918)	+	(2049.981 - 179.966) )	/ 2 )
	=	639.449	/	( (1701.161	+	1870.015)	/ 2 )
	=	639.449	/	1785.588
	=	35.81 %

Linear Technology's ROCE % of for the quarter that ended in Dec. 2016 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2016 )		(Q: Sep. 2016 )		(Q: Dec. 2016 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2016 )		(Q: Sep. 2016 )		(Q: Dec. 2016 )
	=	640.98	/	( ( (2125.396 - 204.306)	+	(2191.481 - 199.617) )	/ 2 )
	=	640.98	/	( ( 1921.09	+	1991.864 )	/ 2 )
	=	640.98	/	1956.477
	=	32.76 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2016) EBIT data.

Linear Technology (NAS:LLTC) 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.

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Linear Technology (Linear Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Linear Technology Corp (NAS:LLTC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.linear.com

Linear Technology designs and manufactures standard high-performance analog integrated circuits for a diverse customer base spanning industrial, automotive, communications, and high-end consumer electronics. The firm offers thousands of analog products to tens of thousands of original equipment manufacturers globally. Most of its products support functions such as power management, data interface, and conversion. International markets account for the lion's share of Linear's revenue.

Executives

Steve Pietkiewicz	officer: VP & GM Power Business Unit	1630 MCCARTHY BLVD., MILPITAS CA 95035
Swanson Robert H Jr	director, officer: Executive Chair	1630 MCCARTHY BLVD, MILPITAS CA 95035
Lothar Maier	director, officer: CEO	1630 MCCARTHY BLVD, MILPITAS CA 95035