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AppLovin (FRA:6RV) ROCE % : 52.92% (As of Dec. 2024)


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What is AppLovin 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. AppLovin's annualized ROCE % for the quarter that ended in Dec. 2024 was 52.92%.


AppLovin ROCE % Historical Data

The historical data trend for AppLovin'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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AppLovin ROCE % Chart

AppLovin Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROCE %
Get a 7-Day Free Trial -4.43 4.29 -0.64 13.34 41.86

AppLovin 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.02 30.75 35.56 46.48 52.92

AppLovin ROCE % Calculation

AppLovin's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=1809.023/( ( (4914.374 - 865.76) + (5605.142 - 1009.886) )/ 2 )
=1809.023/( (4048.614+4595.256)/ 2 )
=1809.023/4321.935
=41.86 %

AppLovin's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2024 )  (Q: Sep. 2024 )(Q: Dec. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2024 )  (Q: Sep. 2024 )(Q: Dec. 2024 )
=2327.612/( ( (4903.678 - 702.362) + (5605.142 - 1009.886) )/ 2 )
=2327.612/( ( 4201.316 + 4595.256 )/ 2 )
=2327.612/4398.286
=52.92 %

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

* 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.


AppLovin  (FRA:6RV) 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.


AppLovin ROCE % Related Terms

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AppLovin Business Description

Traded in Other Exchanges
Address
1100 Page Mill Road, Palo Alto, CA, USA, 94304
AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max, and gaming studios, which develop mobile games. AppLovin announced in February 2025 its plans to divest from the lower-margin gaming studios to focus exclusively on the ad tech platform. AppLovin's primary tool for future growth is Axon 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.

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