Rakuten Group (TSE:4755) ROCE % : -0.56% (As of Dec. 2023)

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What is Rakuten Group 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. Rakuten Group's annualized ROCE % for the quarter that ended in Dec. 2023 was -0.56%.

Rakuten Group ROCE % Historical Data

The historical data trend for Rakuten Group'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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Rakuten Group ROCE % Chart

Rakuten Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-0.45

-0.68

-1.22

-1.42

-0.73

Rakuten Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															-1.81	-1.19	-0.32	-0.46	-0.56

Rakuten Group ROCE % Calculation

Rakuten Group'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 )
	=	-153171	/	( ( (20402281 - 468701)	+	(22625576 - 450024) )	/ 2 )
	=	-153171	/	( (19933580	+	22175552)	/ 2 )
	=	-153171	/	21054566
	=	-0.73 %

Rakuten Group'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 )
	=	-122164	/	( ( (21640993 - 405824)	+	(22625576 - 450024) )	/ 2 )
	=	-122164	/	( ( 21235169	+	22175552 )	/ 2 )
	=	-122164	/	21705360.5
	=	-0.56 %

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

Rakuten Group (TSE:4755) 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.

Rakuten Group ROCE % Related Terms

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Rakuten Group (TSE:4755) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Rakuten Group Inc (TSE:4755) » Definitions » ROCE %

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Address

4-12-3 Higashishinagawa, Shinagawa Seaside Rakuten Tower, Shinagawa-ku, Tokyo, JPN, 140-0002

Website

https://www.rakuten.co.jp

Rakuten is a leading e-commerce and fintech service provider in Japan. It has built up a comprehensive Rakuten ecosystem in Japan, including Rakuten Ichiba for e-commerce, Rakuten Travel, Rakuten Card, Rakuten Bank, Rakuten Securities, and decided to become the fourth mobile network operator in Japan, started its full service in April 2020. Mergers and acquisitions in internet and e-finance businesses have driven growth. The loyalty programme, Rakuten Super Points, has encouraged cross-use of services in its ecosystem. About 80% of its revenue is generated from the Japanese market.

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