Luckin Coffee (Luckin Coffee) ROCE % : 8.74% (As of Dec. 2023)

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What is Luckin Coffee 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. Luckin Coffee's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.74%.

Luckin Coffee ROCE % Historical Data

The historical data trend for Luckin Coffee'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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Luckin Coffee ROCE % Chart

Luckin Coffee Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-76.20

-91.37

7.96

16.53

30.07

Luckin Coffee Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															18.65	35.67	52.57	33.28	8.74

Luckin Coffee ROCE % Calculation

Luckin Coffee'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 )
	=	435.192	/	( ( (1503.277 - 405.76)	+	(2561.83 - 765.06) )	/ 2 )
	=	435.192	/	( (1097.517	+	1796.77)	/ 2 )
	=	435.192	/	1447.1435
	=	30.07 %

Luckin Coffee'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 )
	=	148.532	/	( ( (2352.881 - 751.175)	+	(2561.83 - 765.06) )	/ 2 )
	=	148.532	/	( ( 1601.706	+	1796.77 )	/ 2 )
	=	148.532	/	1699.238
	=	8.74 %

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

Luckin Coffee (OTCPK:LKNCY) 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.

Luckin Coffee ROCE % Related Terms

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Luckin Coffee (Luckin Coffee) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Luckin Coffee Inc (OTCPK:LKNCY) » Definitions » ROCE %

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Traded in Other Exchanges

0A6U:UK LC0A:Germany

Address

1-3 Taibei Road, 28th Floor, Building T3, Haixi Jingu Plaza, Siming District, Fujian, Xiamen, CHN, 361008

Website

https://investor.luckincoffee.com

Luckin Coffee Inc is a China based company engaged in operation of coffee stores. It sources its Arabica coffee beans from various suppliers and engage World Barista Champion teams to design its coffee recipes. The company also has partnered with suppliers for other products such as juices and light meals.