Sumitomo Rubber Industries (TSE:5110) ROCE % : 10.67% (As of Dec. 2023)

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What is Sumitomo Rubber Industries 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. Sumitomo Rubber Industries's annualized ROCE % for the quarter that ended in Dec. 2023 was 10.67%.

Sumitomo Rubber Industries ROCE % Historical Data

The historical data trend for Sumitomo Rubber Industries'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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Sumitomo Rubber Industries ROCE % Chart

Sumitomo Rubber Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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4.95

5.49

6.73

3.20

8.46

Sumitomo Rubber Industries 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															-0.17	4.86	5.34	14.00	10.67

Sumitomo Rubber Industries ROCE % Calculation

Sumitomo Rubber Industries'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 )
	=	76450	/	( ( (1225202 - 352908)	+	(1266732 - 331089) )	/ 2 )
	=	76450	/	( (872294	+	935643)	/ 2 )
	=	76450	/	903968.5
	=	8.46 %

Sumitomo Rubber Industries'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 )
	=	99164	/	( ( (1285117 - 361656)	+	(1266732 - 331089) )	/ 2 )
	=	99164	/	( ( 923461	+	935643 )	/ 2 )
	=	99164	/	929552
	=	10.67 %

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

Sumitomo Rubber Industries (TSE:5110) 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.

Sumitomo Rubber Industries ROCE % Related Terms

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Sumitomo Rubber Industries (TSE:5110) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Sumitomo Rubber Industries Ltd (TSE:5110) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SMTUF:USA 108:Germany

Address

3-6-9, Wakinohama-cho, Chuo-ku, Hyogo, Kobe, JPN, 651-0072

Website

http://www.srigroup.co.jp

Sumitomo Rubber Industries makes and sells rubber tires, sports equipment, and other products in three segments based on product type. The tire segment, which generates the majority of revenue, sells rubber tires for automobiles and motorcycles under the Dunlop and Falken brand names. The sports segment sells golf, tennis, and fitness equipment under the Srixon, XXIO, Cleveland, and Dunlop brand names. The industrial and other products segment sells rubber parts for printers, artificial turf for sporting use, floor coating materials, portable ramps, gloves, tubes, and valves. More revenue comes from Japan than any other region.

Sumitomo Rubber Industries (TSE:5110) Headlines

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