Weibo (WB) ROCE %

: 10.02% (As of Sep. 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. Weibo's annualized ROCE % for the quarter that ended in Sep. 2023 was 10.02%.

Weibo ROCE % Historical Data

The historical data trend for Weibo'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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Weibo Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

28.98

19.02

9.24

11.58

3.54

Weibo Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROCE %																9.69	-9.60	6.48	8.44	10.02

Weibo ROCE % Calculation

Weibo'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 )
	=	199.684	/	( ( (7519.522 - 2159.019)	+	(7129.454 - 1219.938) )	/ 2 )
	=	199.684	/	( (5360.503	+	5909.516)	/ 2 )
	=	199.684	/	5635.0095
	=	3.54 %

Weibo'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 )
	=	535.944	/	( ( (6878.933 - 1171.303)	+	(6710.537 - 1715.757) )	/ 2 )
	=	535.944	/	( ( 5707.63	+	4994.78 )	/ 2 )
	=	535.944	/	5351.205
	=	10.02 %

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

Weibo (NAS:WB) 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.

Weibo ROCE % Related Terms

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Weibo (WB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Weibo Corp (NAS:WB) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

09898:Hong Kong 0LUG:UK 2WB:Germany W1BO34:Brazil WB:Argentina

Address

No. 8 Xinyuan S. Road, 8th Floor, QIHAO Plaza, Chaoyang District, Beijing, CHN, 100027

Website

http://ir.weibo.com

Weibo Corp is a China-based company mainly engaged in the social media advertising business for people to create, discover and distribute content. The Company's activities include Advertising and Marketing, which mainly provides a full range of advertising customization and marketing solutions. The Value-added Services mainly provide services such as membership services on social platforms, online games, live broadcasts, social e-commerce, and others. The Company's main product is the social platform Weibo.