KE Holdings (KE Holdings) ROCE % : 4.51% (As of Sep. 2023)

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What is KE Holdings 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. KE Holdings's annualized ROCE % for the quarter that ended in Sep. 2023 was 4.51%.

KE Holdings ROCE % Historical Data

The historical data trend for KE Holdings'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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KE Holdings ROCE % Chart

KE Holdings Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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-2.64

-3.77

8.52

1.64

0.40

KE Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															6.43	7.68	15.44	5.47	4.51

KE Holdings ROCE % Calculation

KE Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	44.003	/	( ( (15750.375 - 4543.064)	+	(15684.46 - 4782.38) )	/ 2 )
	=	44.003	/	( (11207.311	+	10902.08)	/ 2 )
	=	44.003	/	11054.6955
	=	0.40 %

KE Holdings's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	502.312	/	( ( (16395.564 - 5146.59)	+	(16221.755 - 5203.473) )	/ 2 )
	=	502.312	/	( ( 11248.974	+	11018.282 )	/ 2 )
	=	502.312	/	11133.628
	=	4.51 %

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

KE Holdings (NYSE:BEKE) 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.

KE Holdings ROCE % Related Terms

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KE Holdings (KE Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » KE Holdings Inc (NYSE:BEKE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

02423:Hong Kong KE8:Germany

Address

No. 2 Chuangye Road, Oriental Electronic Technology Building, Haidian District, Beijing, CHN, 100086

Website

https://investors.ke.com

KE Holdings, or Beike, is a large residential real estate sales and rental brokerage company in China. Founded in 2001, the company operates through self-owned Lianjia stores in Beijing and Shanghai and connected third-party agencies including franchise brand Deyou in other cities, with commissions charged on existing home and new home transactions. Leveraging an online-offline hybrid model, Beike also attract clients through its namesake online marketplace. The company tapped into home renovation services by acquiring Shengdu Home Decoration in 2022. As at the end of 2022, Beike's cofounders collectively control the company, while Tencent and its affiliates share 8% of voting power.