Astera Labs (Astera Labs) ROCE % : -67.69% (As of Mar. 2024)

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What is Astera Labs 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. Astera Labs's annualized ROCE % for the quarter that ended in Mar. 2024 was -67.69%.

Astera Labs ROCE % Historical Data

The historical data trend for Astera Labs'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.
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Astera Labs ROCE % Chart

Astera Labs Annual Data

Trend

Dec22

Dec23

ROCE %

-35.07

-17.72

Astera Labs Quarterly Data
	Dec22	Mar23	Dec23	Mar24
ROCE %	-	-44.11	-	-67.69

Astera Labs ROCE % Calculation

Astera Labs'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 )
	=	-29.497	/	( ( (211.731 - 40.09)	+	(196.292 - 35.079) )	/ 2 )
	=	-29.497	/	( (171.641	+	161.213)	/ 2 )
	=	-29.497	/	166.427
	=	-17.72 %

Astera Labs's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	-331.868	/	( ( (196.292 - 35.079)	+	(864.901 - 45.587) )	/ 2 )
	=	-331.868	/	( ( 161.213	+	819.314 )	/ 2 )
	=	-331.868	/	490.2635
	=	-67.69 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Astera Labs (NAS:ALAB) 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.

Astera Labs ROCE % Related Terms

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Astera Labs (Astera Labs) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Astera Labs Inc (NAS:ALAB) » Definitions » ROCE %

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Traded in Other Exchanges

N/A

Address

2901 Tasman Drive, Suite 205, Santa Clara, CA, USA, 95054

Website

https://www.asteralabs.com

Astera Labs Inc is a company that offers an Intelligent Connectivity Platform, comprised of Semiconductor-based, high-speed mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors. COSMOS, their software suite which is embedded in its connectivity products and integrated into their customers' systems. The Company delivers critical connectivity performance, enables flexibility and customization, and supports observability and predictive analytics. This approach addresses the data, network, and memory bottlenecks, scalability, and other infrastructure requirements of hyperscalers and system original equipment manufacturers.

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