L'Oreal

L'Oreal ROCE

The Return on Capital Employed (ROCE) of L'Oreal (OR.PA) as of Oct 2, 2026 is 25.40 %. In the previous year, Return on Capital Employed (ROCE) was 26.22 % — a change of -3.10% (lower).

ROCE

25.40 %

YoY

-3.10%

Last updated:

In 2026, L'Oreal's return on capital employed (ROCE) was 25.40 %, a -3.10% increase from the 26.22 % ROCE in the previous year.

The L'Oreal ROCE history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

ROCE
Date
ROCE
Jan 1, 2018
18.28 EUR
Jan 1, 2019
18.85 EUR
Jan 1, 2020
17.96 EUR
Jan 1, 2021
26.11 EUR
Jan 1, 2022
27.43 EUR
Jan 1, 2023
28.00 EUR
Jan 1, 2024
26.22 EUR
Jan 1, 2025
25.40 EUR
The L'Oreal ROCE history
YEARROCEYoY
25.40 %-3.10%
26.22 %-6.38%
28.00 %+2.09%
27.43 %+5.05%
26.11 %+45.36%
17.96 %-4.72%
18.85 %+3.12%
18.28 %-3.45%
18.93 %+2.97%
18.39 %+0.23%
18.35 %-4.76%
19.26 %—
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L'Oreal Stock analysis

What does L'Oreal do? L'Oreal SA is a French cosmetics company that operates worldwide. It was founded in 1909 by Eugène Schueller. The name L'Oreal is an abbreviation for "Laboratoires de recherches cosmétiques". L'Oreal's business model is based on the manufacturing, distribution, and marketing of cosmetic products. The company operates in various levels, such as research and development, production, marketing, and distribution of skincare, hair care, makeup, and perfume products. The different divisions of L'Oreal include: luxury products, mass-market products, active cosmetics, and professional products. Each of these divisions has its own target audience and products. Luxury products are high-priced products targeting an upscale audience, while mass-market products have lower prices and a broader target audience. The active cosmetics division offers products for specific skin problems or needs, such as sun protection, anti-aging products, or products for sensitive skin. The professional products division is intended for hairdressers and beauty salons, offering products for hair care, styling, and coloring. L'Oreal is known for its numerous brands, such as Lancôme, L'Oreal Paris, Maybelline New York, Garnier, Redken, Matrix, and many more. Each of these brands has its own products and target audiences. L'Oreal also has several licensing and partnership agreements, such as with Armani, Ralph Lauren, and Yves Saint Laurent. The main product of L'Oreal is skincare. The company is one of the world's largest manufacturers of skincare products. L'Oreal is known for its anti-aging products and has also increasingly launched products for sensitive and problematic skin in recent years. Another important product segment is hair care, represented by brands like L'Oreal Professionnel, Redken, and Kérastase. L'Oreal places great emphasis on research and development. The company operates numerous research laboratories worldwide and has made significant investments in research in recent years. L'Oreal works closely with scientists and dermatologists and aims to bring innovative and effective products to the market. L'Oreal is also a company that is committed to sustainability and social responsibility. The company has launched a range of initiatives to minimize its impact on the environment and improve its ethical standards. L'Oreal aims to be carbon neutral by 2030 and climate neutral by 2050. Overall, L'Oreal is a company distinguished by its wide range of products, well-known brands, and research and development work. The company is able to meet the different needs and desires of its customers and offers products for all price ranges and target audiences. L'Oreal is also a company that is committed to sustainability and social responsibility, making it an attractive choice for customers interested in these issues. L'Oreal is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling L'Oreal's Return on Capital Employed (ROCE)

L'Oreal's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing L'Oreal's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

L'Oreal's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in L'Oreal’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about L'Oreal stock

Return on Capital Employed (ROCE) of L'Oreal is 25.40 % in 2026.

Return on Capital Employed (ROCE) of L'Oreal changed from 26.22 % to 25.40 %, representing a -3.10% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) L'Oreal since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s L'Oreal with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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Profitability — L'Oreal

ROEROAROCEROICAsset TurnoverInventory TurnoverReceivables TurnoverDays Sales OutstandingDays Inventory OutstandingDays Payable OutstandingCash Conversion CycleCROICGross Profit/AssetsFixed Asset TurnoverEquity TurnoverWorking Capital TurnoverPayables TurnoverCapital IntensityReceivables/RevenueInventory/RevenueEBIT/Assets

All Key Metrics — L'Oreal