Lenovo Group (Lenovo Group) ROCE % : 20.65% (As of Dec. 2023)

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What is Lenovo Group 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. Lenovo Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 20.65%.

Lenovo Group ROCE % Historical Data

The historical data trend for Lenovo Group'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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Lenovo Group ROCE % Chart

Lenovo Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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11.81

13.93

20.95

27.06

19.95

Lenovo Group 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															24.88	-0.33	13.36	17.69	20.65

Lenovo Group ROCE % Calculation

Lenovo Group's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	2452.099	/	( ( (44510.444 - 32758.735)	+	(38920.057 - 26093.357) )	/ 2 )
	=	2452.099	/	( (11751.709	+	12826.7)	/ 2 )
	=	2452.099	/	12289.2045
	=	19.95 %

Lenovo Group'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 )
	=	2581.508	/	( ( (39256.653 - 27055.687)	+	(39504.337 - 26700.663) )	/ 2 )
	=	2581.508	/	( ( 12200.966	+	12803.674 )	/ 2 )
	=	2581.508	/	12502.32
	=	20.65 %

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

Lenovo Group (OTCPK:LNVGY) 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.

Lenovo Group ROCE % Related Terms

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Lenovo Group (Lenovo Group) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Lenovo Group Ltd (OTCPK:LNVGY) » Definitions » ROCE %

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LNVGF:USA 00992:Hong Kong LHL:Germany

Address

979 King's Road, 23rd Floor, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong, HKG

Website

https://www.lenovo.com

Lenovo is a global technology hardware company with a leading market share in personal computers. Its operations are divided into three main business segments: PC and smart devices, mobile, and data center, which we expect to account for 55%, 11%, and 19% of sales in the midterm, respectively. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 16% of overall sales in fiscal 2022, from 6% in 2015.