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PCCW ROCE

What is the ROCE of PCCW?

The ROCE of PCCW Limited is 0.00%

What is the definition of ROCE?



Return on capital employed (ROCE) is a financial ratio that measures a company’s profitability and the efficiency with which its capital is used.

= EBIT / (assets - current liabilities)

Return on capital employed (ROCE) is the total amount of capital that a company has utilized in order to generate profits. It is the sum of shareholders' equity and debt liabilities. It can be simplified as total assets minus current liabilities.

ROCE is especially useful when comparing the performance of companies in capital-intensive sectors. ROCE considers debt and other liabilities as well compared to other fundamentals which only analyze profitability related to a company’s common equity. This provides a better indication of financial performance for companies with significant debt. For a company, the ROCE trend over the years is also an important indicator of performance. In general, investors tend to favor companies with stable and rising ROCE numbers over companies where ROCE is volatile and bounces around from one year to the next.

Instead of using capital employed at an arbitrary point in time, analysts and investors often calculate ROCE based on the average capital employed (ROACE), which takes the average of opening and closing capital employed for the time period.

ROCE of companies in the Communication Services sector on HKSE compared to PCCW

What does PCCW do?

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company's services include local telephony, local data and broadband, mobile, international telecommunications, and satellite-based and network-based telecommunications services; and outsourcing, consulting, and contact center services. It also provides technical support, electronics and communications engineering, and products and solutions, as well as free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; and sells mobile handsets and accessories. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; supply of broadband internet access solutions and web services; provision of data services; software development, systems integration, consulting, and informatization activities; computer facilities management; the provision of computer and IP/IT related value-added services to business customers; and operates customer loyalty program and online merchandise sales. Additionally, the company offers IT and business process outsourcing, fintech, e-Commerce, big data analytics, managed, digital, cloud, and IoT solutions. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

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