easyJet (LSE:EZJ) ROCE % : -9.60% (As of Mar. 2024)

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What is easyJet 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. easyJet's annualized ROCE % for the quarter that ended in Mar. 2024 was -9.60%.

easyJet ROCE % Historical Data

The historical data trend for easyJet'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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easyJet ROCE % Chart

easyJet Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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9.40

-23.62

-15.63

-0.94

9.80

easyJet Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROCE %	Get a 7-Day Free Trial															-14.61	12.98	-10.28	33.05	-9.60

easyJet ROCE % Calculation

easyJet's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	611	/	( ( (10454 - 3678)	+	(9841 - 4144) )	/ 2 )
	=	611	/	( (6776	+	5697)	/ 2 )
	=	611	/	6236.5
	=	9.80 %

easyJet'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: Sep. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Sep. 2023 )		(Q: Mar. 2024 )
	=	-568	/	( ( (9841 - 4144)	+	(10907 - 4765) )	/ 2 )
	=	-568	/	( ( 5697	+	6142 )	/ 2 )
	=	-568	/	5919.5
	=	-9.60 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2024) EBIT data.

easyJet (LSE:EZJ) 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.

easyJet ROCE % Related Terms

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easyJet (LSE:EZJ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » easyJet PLC (LSE:EZJ) » Definitions » ROCE %

Comparable Companies

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ESYJY:USA EJTTF:USA EZJl:UK EJT1:Germany

Address

Hangar 89, London Luton Airport, Luton, Bedfordshire, GBR, LU2 9PF

Website

https://www.easyjet.com

easyJet PLC is a European low-cost carrier with a focus on Western European markets. The company employs a low-cost no-frills model to offer low fares to customers on short-haul routes. Its operating segment includes Airline that operates easyJet's route network and Holidays that sells holiday packages. It generates maximum revenue from the Airline segment. Geographically, it derives a majority of its revenue from the United Kingdom.