GDS Holdings (GDS Holdings) ROCE % : 0.60% (As of Sep. 2023)

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What is GDS Holdings 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. GDS Holdings's annualized ROCE % for the quarter that ended in Sep. 2023 was 0.60%.

GDS Holdings ROCE % Historical Data

The historical data trend for GDS 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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GDS Holdings ROCE % Chart

GDS Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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1.52

2.40

2.04

1.33

1.40

GDS Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %	Get a 7-Day Free Trial															1.07	2.63	1.06	1.57	0.60

GDS Holdings ROCE % Calculation

GDS Holdings'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 )
	=	128.807	/	( ( (11246.517 - 2114.085)	+	(10731.092 - 1520.917) )	/ 2 )
	=	128.807	/	( (9132.432	+	9210.175)	/ 2 )
	=	128.807	/	9171.3035
	=	1.40 %

GDS Holdings's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	56.604	/	( ( (10759.707 - 1357.253)	+	(10529.369 - 1013.681) )	/ 2 )
	=	56.604	/	( ( 9402.454	+	9515.688 )	/ 2 )
	=	56.604	/	9459.071
	=	0.60 %

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

GDS Holdings (NAS:GDS) 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.

GDS Holdings ROCE % Related Terms

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GDS Holdings (GDS Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » GDS Holdings Ltd (NAS:GDS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

GDS:Mexico 09698:Hong Kong G40:Germany G1DS34:Brazil

Address

No. 999 Zhouhai Road, F4/F5, Building C, Sunland International, Pudong, Shanghai, CHN, 200137

Website

https://www.gds-services.com

GDS Holdings started as an IT service provider in 2001 then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. It has aggressively raised capital over the past four years for expansion. Its data centers are located predominantly in and around the Tier 1 cities in China and it has also started an expanding into Southeast Asia. GDS listed on the NASDAQ in 2016 and completed a secondary listing in Hong Kong in 2020.