Vipshop Holdings (BSP:V1IP34) ROCE % : 14.18% (As of Sep. 2024)

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What is Vipshop 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. Vipshop Holdings's annualized ROCE % for the quarter that ended in Sep. 2024 was 14.18%.

Vipshop Holdings ROCE % Historical Data

The historical data trend for Vipshop 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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Vipshop Holdings ROCE % Chart

Vipshop Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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27.95

18.06

20.24

24.35

25.38

Vipshop Holdings Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															38.32	28.51	22.61	14.18	31.10

Vipshop Holdings ROCE % Calculation

Vipshop Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	6869.09	/	( ( (49262.768 - 21462.615)	+	(49629.737 - 21015.117) )	/ 2 )
	=	6869.09	/	( (27800.153	+	28614.62)	/ 2 )
	=	6869.09	/	28207.3865
	=	24.35 %

Vipshop Holdings's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	4607.264	/	( ( (50225.746 - 18369.565)	+	(54379.862 - 21253.188) )	/ 2 )
	=	4607.264	/	( ( 31856.181	+	33126.674 )	/ 2 )
	=	4607.264	/	32491.4275
	=	14.18 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Vipshop Holdings (BSP:V1IP34) 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.

Vipshop Holdings ROCE % Related Terms

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Vipshop Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Vipshop Holdings Ltd (BSP:V1IP34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

VIPS:USA VIPS N:Mexico 0LQ0:UK 1VPA:Germany

Address

128 Dingxin Road, Haizhu District, Guangdong, Guangzhou, CHN, 510220

Website

https://www.vip.com

Vipshop is a leading Chinese online discount retailer offering branded products at attractive discounts ranging from 10%-90% off their original price through daily flash sales. It operates warehousing, retailing, product procurements, software development, and information technology support in-house while outsourcing to third-party logistics providers for distribution and shipments. Branded products on Vipshop's platform are sourced mostly through a consignment model with over 29,000 global partners as of Dec. 31, 2023. As of March 31, 2024, Eric Ya Shen, chairman and CEO, has 63.1% voting rights and a 30.9% stake while Arthur Xiaobo Hong, vice chairman and COO, has a 17.6% stake. Leading Chinese social media firm and strategic shareholder Tencent also holds an 11.8% interest.

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