Kuaishou Technology (HKSE:01024) ROCE % : 34.65% (As of Dec. 2023)

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What is Kuaishou Technology 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. Kuaishou Technology's annualized ROCE % for the quarter that ended in Dec. 2023 was 34.65%.

Kuaishou Technology ROCE % Historical Data

The historical data trend for Kuaishou Technology'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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Kuaishou Technology ROCE % Chart

Kuaishou Technology Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-128.88

-520.37

-188.57

-21.95

13.78

Kuaishou Technology Quarterly Data
	Dec17	Dec18	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															-14.28	-6.68	10.36	15.66	34.65

Kuaishou Technology ROCE % Calculation

Kuaishou Technology'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 )
	=	8076.463	/	( ( (99730.441 - 45460.339)	+	(116264.32 - 53352.346) )	/ 2 )
	=	8076.463	/	( (54270.102	+	62911.974)	/ 2 )
	=	8076.463	/	58591.038
	=	13.78 %

Kuaishou Technology'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 )
	=	20948.052	/	( ( (105040.429 - 47025.279)	+	(116264.32 - 53352.346) )	/ 2 )
	=	20948.052	/	( ( 58015.15	+	62911.974 )	/ 2 )
	=	20948.052	/	60463.562
	=	34.65 %

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

Kuaishou Technology (HKSE:01024) 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.

Kuaishou Technology ROCE % Related Terms

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Kuaishou Technology (HKSE:01024) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Kuaishou Technology (HKSE:01024) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

KSHTY:USA KUASF:USA 5Y0:Germany 5Y0:Germany

Address

No. 6, Shangdi West Road, Building 1, Haidian District, Beijing, CHN, 100085

Website

https://www.kuaishou.com

Kuaishou Technology is a social media platform on which users can share short-form videos that are up to 5 minutes long. The audience engages with the platform by looking at different videos on demand at any time, similar to TikTok. About 52% of revenue is generated from advertising, mainly in the form of targeted ads related to the video content—known as closed-loop ads—but also from outside unrelated brands. Kuaishou also generates livestream revenue by selling virtual gifts to fans that are donated to performers. It also has livestreaming e-commerce, where users purchase products related to the video, generating commission from each transaction. Kuaishou competes mainly with ByteDance's Douyin, as both are short-form video platforms. Tencent owns 19% of Kuaishou.

Kuaishou Technology (HKSE:01024) Headlines

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