Wise (LSE:WISE) ROCE % : 57.75% (As of Sep. 2023)

View and export this data going back to 2021. Start your Free Trial

What is Wise 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. Wise's annualized ROCE % for the quarter that ended in Sep. 2023 was 57.75%.

Wise ROCE % Historical Data

The historical data trend for Wise'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.

* Premium members only.

Wise ROCE % Chart

Wise Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

8.40

12.17

14.56

10.47

27.55

Wise Semi-Annual Data
	Mar19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROCE %	Get a 7-Day Free Trial				9.72	10.92	18.86	32.04	57.75

Wise ROCE % Calculation

Wise's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	156.5	/	( ( (7564.4 - 7046.6)	+	(11904.2 - 11286) )	/ 2 )
	=	156.5	/	( (517.8	+	618.2)	/ 2 )
	=	156.5	/	568
	=	27.55 %

Wise'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: Mar. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Mar. 2023 )		(Q: Sep. 2023 )
	=	407.2	/	( ( (11904.2 - 11286)	+	(13872.4 - 13080.5) )	/ 2 )
	=	407.2	/	( ( 618.2	+	791.9 )	/ 2 )
	=	407.2	/	705.05
	=	57.75 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2023) EBIT data.

Wise (LSE:WISE) 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.

Wise ROCE % Related Terms

Thank you for viewing the detailed overview of Wise's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Wise (LSE:WISE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Wise PLC (LSE:WISE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WIZEY:USA WPLCF:USA WISEl:UK 6WS0:Germany

Address

56 Shoreditch High Street, 6th Floor, Tea Building, London, GBR, E1 6JJ

Website

https://www.wise.com

Wise is a currency conversion platform utilizing a peer-to-peer network to reduce transfer costs. The group focuses primarily on private clients and small and midsize enterprises. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds into various asset-management products.