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-0.000458689295338479 0.000114672323834701 -5.73361619172691E-05 -0.00169715039275266 0.00057336161917318 0.00126139556218106 -0.00235078263861015 -0.0013760678860156
Stock impact report

Why Visa Inc.’s (NYSE:V) Return On Capital Employed Is Impressive [Yahoo! Finance News]

Visa Inc. (V) 
Last visa inc. earnings: 4/30 04:01 pm Check Earnings Report
US:NYSE Investor Relations: investor.visa.com
Today we are going to look at Visa Inc. NYSE:VFirst up, we'll look at what ROCE is and how we calculate it. Then we'll compare its ROCE to similar companies. Finally, we'll look at how its current liabilities affect its ROCE.Understanding Return On Capital Employed ROCE)ROCE measures the 'return' pre-tax profit) a company generates from capital employed in its business. In general, businesses with a higher ROCE are usually better quality. Ultimately, it is a useful but imperfect metric. Author Edwin WhitingsaysHow Do You Calculate Return On Capital Employed?The formula for calculating the return on capital employed is:Return on Capital Employed = Earnings Before Interest and Tax EBIT) ÷ Total Assets - Current Liabilities)Or for Visa:0.27 = US$16b ÷ US$75b - US$18b) Based on the trailing twelve months to December 2019.)So,Visa has an ROCE of 27%.See our latest analysis for VisaDoes Visa Have A Good ROCE?ROCE is commonly used for comparing the performance of similar businesses. Visa's R Show less Read more
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