Peloton Interactive (WBO:PTON) ROCE %

: -36.12% (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. Peloton Interactive's annualized ROCE % for the quarter that ended in Dec. 2023 was -36.12%.

Peloton Interactive ROCE % Historical Data

The historical data trend for Peloton Interactive'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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Peloton Interactive Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

-57.76

-4.77

-6.54

-95.88

-46.40

Peloton Interactive Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																-47.44	-42.99	-40.44	-26.93	-36.12

Peloton Interactive ROCE % Calculation

Peloton Interactive's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-1071.511	/	( ( (3810.961 - 1045.803)	+	(2555.879 - 702.772) )	/ 2 )
	=	-1071.511	/	( (2765.158	+	1853.107)	/ 2 )
	=	-1071.511	/	2309.1325
	=	-46.40 %

Peloton Interactive'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 )
	=	-619.524	/	( ( (2504.414 - 702.75)	+	(2356.14 - 727.456) )	/ 2 )
	=	-619.524	/	( ( 1801.664	+	1628.684 )	/ 2 )
	=	-619.524	/	1715.174
	=	-36.12 %

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

Peloton Interactive (WBO:PTON) 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.

Peloton Interactive ROCE % Related Terms

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Peloton Interactive (WBO:PTON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Peloton Interactive Inc (WBO:PTON) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

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Address

441 Ninth Avenue, Sixth Floor, New York, NY, USA, 10001

Website

https://www.onepeloton.com

Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of sales of bike and tread and related accessories, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue consists of revenue generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates the majority of the revenue from the sale of Connected Fitness Products.