Gaotu Techedu (FRA:18WA) ROCE % : -65.24% (As of Sep. 2024)

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What is Gaotu Techedu 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. Gaotu Techedu's annualized ROCE % for the quarter that ended in Sep. 2024 was -65.24%.

Gaotu Techedu ROCE % Historical Data

The historical data trend for Gaotu Techedu'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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Gaotu Techedu ROCE % Chart

Gaotu Techedu Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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24.80

-42.38

-64.33

-3.57

-4.33

Gaotu Techedu Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															-11.04	-21.42	-8.88	-54.88	-65.24

Gaotu Techedu ROCE % Calculation

Gaotu Techedu'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 )
	=	-19.137	/	( ( (660.256 - 217.896)	+	(695.219 - 253.424) )	/ 2 )
	=	-19.137	/	( (442.36	+	441.795)	/ 2 )
	=	-19.137	/	442.0775
	=	-4.33 %

Gaotu Techedu'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 )
	=	-249.624	/	( ( (748.59 - 333.464)	+	(663.19 - 313.027) )	/ 2 )
	=	-249.624	/	( ( 415.126	+	350.163 )	/ 2 )
	=	-249.624	/	382.6445
	=	-65.24 %

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

Gaotu Techedu (FRA:18WA) 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.

Gaotu Techedu ROCE % Related Terms

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Gaotu Techedu Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Gaotu Techedu Inc (FRA:18WA) » Definitions » ROCE %

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GOTU:USA 0A7G:UK

Address

10 Xibeiwang East Road, 5th Floor, Gientech Building, 17 East Zone, Haidian District, Beijing, CHN, 100193

Website

https://ir.gaotu.cn

Gaotu Techedu Inc is a technology-driven education company that provides online live courses in a large-class setting backed by its proprietary technology infrastructure. The company's segment includes the provision of education services. The company offers courses in large-class format, which amplifies the benefits of online education and allows it to rapidly expand its student base. It operates solely in the PRC and all assets are located in the PRC. The learning services that the company offers include Traditional Learning Services, Non-Academic Tutoring Services, and College Student and Adult Education Services.

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