Robinhood Markets (STU:7KY) ROCE % : 1.76% (As of Dec. 2023)

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What is Robinhood Markets 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. Robinhood Markets's annualized ROCE % for the quarter that ended in Dec. 2023 was 1.76%.

Robinhood Markets ROCE % Historical Data

The historical data trend for Robinhood Markets'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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Robinhood Markets ROCE % Chart

Robinhood Markets Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

-12.68

0.84

-34.77

-13.76

-7.54

Robinhood Markets Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial												-8.51	-27.97	1.10	-4.21	1.76

Robinhood Markets ROCE % Calculation

Robinhood Markets'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 )
	=	-486.927	/	( ( (22030.128 - 15342.832)	+	(29648.444 - 23424.765) )	/ 2 )
	=	-486.927	/	( (6687.296	+	6223.679)	/ 2 )
	=	-486.927	/	6455.4875
	=	-7.54 %

Robinhood Markets'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 )
	=	110.04	/	( ( (24659.966 - 18410.176)	+	(29648.444 - 23424.765) )	/ 2 )
	=	110.04	/	( ( 6249.79	+	6223.679 )	/ 2 )
	=	110.04	/	6236.7345
	=	1.76 %

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

Robinhood Markets (STU:7KY) 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.

Robinhood Markets ROCE % Related Terms

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Robinhood Markets (STU:7KY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Robinhood Markets Inc (STU:7KY) » Definitions » ROCE %

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Traded in Other Exchanges

HOOD:USA HOOD:Mexico 7KY:Germany

Address

85 Willow Road, Menlo Park, CA, USA, 94025

Website

https://www.robinhood.com

Robinhood Markets Inc is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology. Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fractional shares, recurring investments, and IPO Access. It earns transaction-based revenues from routing user orders for options, equities, and cryptocurrencies to market makers when a routed order is executed.

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