Wix.com (NAS:WIX) ROCE %

: -19.36% (As of Dec. 2022)

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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. Wix.com's annualized ROCE % for the quarter that ended in Dec. 2022 was -19.36%.

Wix.com ROCE % Historical Data

The historical data trend for Wix.com'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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Wix.com Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

-8.99

-11.07

-12.72

-3.75

-30.79

Wix.com Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
ROCE %																55.42	-38.51	-32.03	-32.34	-19.36

Wix.com ROCE % Calculation

Wix.com'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 )
	=	-285.353	/	( ( (2059.787 - 774.298)	+	(1758.367 - 1190.472) )	/ 2 )
	=	-285.353	/	( (1285.489	+	567.895)	/ 2 )
	=	-285.353	/	926.692
	=	-30.79 %

Wix.com's ROCE % of for the quarter that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2022 )		(Q: Sep. 2022 )		(Q: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2022 )		(Q: Sep. 2022 )		(Q: Dec. 2022 )
	=	-130.412	/	( ( (1969.711 - 1190.317)	+	(1758.367 - 1190.472) )	/ 2 )
	=	-130.412	/	( ( 779.394	+	567.895 )	/ 2 )
	=	-130.412	/	673.6445
	=	-19.36 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2022) EBIT data.

Wix.com (NAS:WIX) 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.

Wix.com ROCE % Related Terms

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Wix.com (NAS:WIX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Wix.com Ltd (NAS:WIX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WIX:Mexico W1X:Germany W1IX34:Brazil

Address

40 Namal Tel Aviv Street, Tel Aviv, ISR, 6350671

Website

https://www.wix.com

Wix.com Ltd is a cloud-based development platform provider for millions of registered users worldwide. The company is engaged in web development and management that provides an easy-to-use powerful cloud-based platform of products through a freemium model. Its core products consist of three web editors: the Wix Editor, intended for users with basic technological skills, Wix ADI, intended for novice users and Corvid, intended for more tech-savvy users. The company's web development technology is built based on HTML5 and offers HTML5 compatible capabilities, web design and layout tools, domain hosting, and other marketing and workflow management applications and services. The geographic segments include North America, Europe, Latin America, Asia and others.