Farfetch (Farfetch) ROCE % : -39.92% (As of Jun. 2023)

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What is Farfetch 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. Farfetch's annualized ROCE % for the quarter that ended in Jun. 2023 was -39.92%.

Farfetch ROCE % Historical Data

The historical data trend for Farfetch'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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Farfetch ROCE % Chart

Farfetch Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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-19.54

-26.33

-143.43

54.12

14.77

Farfetch Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROCE %	Get a 7-Day Free Trial															11.98	-33.61	-28.44	-24.50	-39.92

Farfetch ROCE % Calculation

Farfetch's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	421.771	/	( ( (3826.514 - 907.257)	+	(3675.916 - 882.878) )	/ 2 )
	=	421.771	/	( (2919.257	+	2793.038)	/ 2 )
	=	421.771	/	2856.1475
	=	14.77 %

Farfetch's ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	-1043.548	/	( ( (3485.961 - 786.292)	+	(3497.954 - 969.276) )	/ 2 )
	=	-1043.548	/	( ( 2699.669	+	2528.678 )	/ 2 )
	=	-1043.548	/	2614.1735
	=	-39.92 %

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

Farfetch (OTCPK:FTCHF) 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.

Farfetch ROCE % Related Terms

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Farfetch (Farfetch) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Farfetch Ltd (OTCPK:FTCHF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

FTCH:Mexico F1F:Germany

Address

The Bower, 211 Old Street, London, GBR, EC1V 9NR

Website

https://www.farfetchinvestors.com

Farfetch is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.