Reddit (Reddit) ROCE % : -141.89% (As of Mar. 2024)

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What is Reddit 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. Reddit's annualized ROCE % for the quarter that ended in Mar. 2024 was -141.89%.

Reddit ROCE % Historical Data

The historical data trend for Reddit'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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Reddit ROCE % Chart

Reddit Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROCE %

-13.19

-12.42

-11.22

-9.48

Reddit Quarterly Data
	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial									-7.93	-18.91	-	0.84	-141.89

Reddit ROCE % Calculation

Reddit'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 )
	=	-140.161	/	( ( (1599.711 - 106.457)	+	(1596.467 - 133.57) )	/ 2 )
	=	-140.161	/	( (1493.254	+	1462.897)	/ 2 )
	=	-140.161	/	1478.0755
	=	-9.48 %

Reddit'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 )
	=	-2357.02	/	( ( (1596.467 - 133.57)	+	(2015.896 - 156.485) )	/ 2 )
	=	-2357.02	/	( ( 1462.897	+	1859.411 )	/ 2 )
	=	-2357.02	/	1661.154
	=	-141.89 %

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

Reddit (NYSE:RDDT) 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.

Reddit ROCE % Related Terms

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Reddit (Reddit) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Reddit Inc (NYSE:RDDT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

303 2nd Street, South Tower, 5th Floor, South Tower, 5th Floor, CA, USA, 94107

Website

https://www.redditinc.com

Reddit Inc is engaged in providing internet content. The company provides online services that include gaming, sports, business, crypto, television and others.

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