Despegar.com (Despegar.com) ROCE % : -7.75% (As of Dec. 2023)

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What is Despegar.com 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. Despegar.com's annualized ROCE % for the quarter that ended in Dec. 2023 was -7.75%.

Despegar.com ROCE % Historical Data

The historical data trend for Despegar.com'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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Despegar.com ROCE % Chart

Despegar.com Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-5.54

-38.32

-24.61

-13.20

16.23

Despegar.com 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															-53.40	12.13	31.93	27.32	-7.75

Despegar.com ROCE % Calculation

Despegar.com'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 )
	=	37.896	/	( ( (804.192 - 564.485)	+	(898.334 - 671.079) )	/ 2 )
	=	37.896	/	( (239.707	+	227.255)	/ 2 )
	=	37.896	/	233.481
	=	16.23 %

Despegar.com'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 )
	=	-17.732	/	( ( (893.671 - 663.478)	+	(898.334 - 671.079) )	/ 2 )
	=	-17.732	/	( ( 230.193	+	227.255 )	/ 2 )
	=	-17.732	/	228.724
	=	-7.75 %

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

Despegar.com (NYSE:DESP) 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.

Despegar.com ROCE % Related Terms

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Despegar.com (Despegar.com) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Despegar.com Corp (NYSE:DESP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

D3G:Germany DESP:Argentina

Address

Juana Manso 1069, Floor 5, Buenos Aires, ARG, C1107CBU

Website

https://www.despegar.com

Despegar.com Corp is an online travel company in Latin America. Its product offering includes airline tickets, packages, hotels, and other travel-related products, which enables consumers to find, compare, plan and purchase travel products easily through its marketplace. The company provides a technology platform for managing the distribution of products and access to users to the network of travel suppliers. It operates through two segments: Air, which consists of the sale of airline tickets; and Packages, Hotels, and Other Travel Products, which consists of travel packages, as well as sales of hotel rooms, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its geographical segments are Argentina, Brazil, Uruguay, Mexico, and other countries.