Zhihu (ZH) ROCE % : -14.43% (As of Dec. 2023)

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What is Zhihu 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. Zhihu's annualized ROCE % for the quarter that ended in Dec. 2023 was -14.43%.

Zhihu ROCE % Historical Data

The historical data trend for Zhihu'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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Zhihu ROCE % Chart

Zhihu Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

-32.86

-20.97

-29.02

-23.95

-19.82

Zhihu 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												-14.60	-15.17	-22.90	-25.97	-14.43

Zhihu ROCE % Calculation

Zhihu'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 )
	=	-150.167	/	( ( (1098.188 - 261.75)	+	(951.692 - 272.47) )	/ 2 )
	=	-150.167	/	( (836.438	+	679.222)	/ 2 )
	=	-150.167	/	757.83
	=	-19.82 %

Zhihu'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 )
	=	-99.804	/	( ( (965.792 - 261.937)	+	(951.692 - 272.47) )	/ 2 )
	=	-99.804	/	( ( 703.855	+	679.222 )	/ 2 )
	=	-99.804	/	691.5385
	=	-14.43 %

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

Zhihu (NYSE:ZH) 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.

Zhihu ROCE % Related Terms

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Zhihu (ZH) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

02390:Hong Kong

Address

A5 Xueyuan Road, Haidian District, Beijing, CHN, 100083

Website

https://www.zhihu.com

Zhihu Inc is primarily engaged in the operation of one online content community and monetizes through paid membership services, advertising services, content-commerce solutions services and vocational training in China. It generates revenues from Advertising services, Paid membership services, Content-commerce solutions, and Others. It derives all its revenues within China.