Zoom Video Communications (BSP:Z1OM34) ROCE % : 8.46% (As of Jan. 2024)

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What is Zoom Video Communications 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. Zoom Video Communications's annualized ROCE % for the quarter that ended in Jan. 2024 was 8.46%.

Zoom Video Communications ROCE % Historical Data

The historical data trend for Zoom Video Communications'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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Zoom Video Communications ROCE % Chart

Zoom Video Communications Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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2.23

27.62

21.51

3.85

7.04

Zoom Video Communications Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															-8.38	0.59	10.04	9.44	8.46

Zoom Video Communications ROCE % Calculation

Zoom Video Communications's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	2583.427	/	( ( (42202.539 - 9027.387)	+	(48836.708 - 8666.788) )	/ 2 )
	=	2583.427	/	( (33175.152	+	40169.92)	/ 2 )
	=	2583.427	/	36672.536
	=	7.04 %

Zoom Video Communications's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	3315.456	/	( ( (47108.207 - 8863.018)	+	(48836.708 - 8666.788) )	/ 2 )
	=	3315.456	/	( ( 38245.189	+	40169.92 )	/ 2 )
	=	3315.456	/	39207.5545
	=	8.46 %

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

Zoom Video Communications (BSP:Z1OM34) 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.

Zoom Video Communications ROCE % Related Terms

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Zoom Video Communications (BSP:Z1OM34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Zoom Video Communications Inc (BSP:Z1OM34) » Definitions » ROCE %

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Traded in Other Exchanges

ZM:USA ZM:Peru ZM:Mexico 1ZM:Italy 5ZMd:UK 5ZM:Germany ZOOM:Austria

Address

55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113

Website

https://www.zoom.com

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

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