Vipshop Holdings (BSP:V1IP34) ROCE %

: 38.32% (As of Dec. 2023)

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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. Vipshop Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 38.32%.

Vipshop Holdings ROCE % Historical Data

The historical data trend for Vipshop Holdings'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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Vipshop Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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24.15

27.95

18.06

20.24

24.35

Vipshop Holdings 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															33.56	24.44	24.80	16.81	38.32

Vipshop Holdings ROCE % Calculation

Vipshop Holdings'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 )
	=	6869.09	/	( ( (49262.768 - 21462.615)	+	(49629.737 - 21015.117) )	/ 2 )
	=	6869.09	/	( (27800.153	+	28614.62)	/ 2 )
	=	6869.09	/	28207.3865
	=	24.35 %

Vipshop Holdings'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 )
	=	10415.812	/	( ( (42114.003 - 16362.355)	+	(49629.737 - 21015.117) )	/ 2 )
	=	10415.812	/	( ( 25751.648	+	28614.62 )	/ 2 )
	=	10415.812	/	27183.134
	=	38.32 %

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

Vipshop Holdings (BSP:V1IP34) 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.

Vipshop Holdings ROCE % Related Terms

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Vipshop Holdings (BSP:V1IP34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Vipshop Holdings Ltd (BSP:V1IP34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

VIPS:USA VIPS:Mexico 0LQ0:UK 1VPA:Germany

Address

128 Dingxin Road, Haizhu District, Guangdong, Guangzhou, CHN, 510220

Website

https://www.vip.com

Vipshop Holdings Ltd is an online discount retailer for brands in China. The company offers branded products to consumers in China through flash sales on its vipshop.com, vip.com and lefeng.com websites. Flash sales represent an online retail format combining the advantages of e-commerce and discount sales through selling a finite quantity of discounted products or services online for a limited period of time. It deals in wide range of products and services for consumers specializing in branded cosmetics, apparel, healthcare products, food and other consumer products. Its operating segment includes Vip.com and Shan Shan Outlets. The company generates maximum revenue from Vip.com segment.

Vipshop Holdings (BSP:V1IP34) Headlines

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