Zip Co (FRA:YRRA) ROCE % : 4.04% (As of Jun. 2024)

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What is Zip Co 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. Zip Co's annualized ROCE % for the quarter that ended in Jun. 2024 was 4.04%.

Zip Co ROCE % Historical Data

The historical data trend for Zip Co'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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Zip Co ROCE % Chart

Zip Co Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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1.86

-28.56

-31.12

-2.96

9.70

Zip Co Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROCE %	Get a 7-Day Free Trial															-47.37	-5.19	-0.69	15.11	4.04

Zip Co ROCE % Calculation

Zip Co's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	182.245	/	( ( (2102.933 - 137.796)	+	(1963.028 - 170.874) )	/ 2 )
	=	182.245	/	( (1965.137	+	1792.154)	/ 2 )
	=	182.245	/	1878.6455
	=	9.70 %

Zip Co's ROCE % of for the quarter that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2024 )		(Q: Dec. 2023 )		(Q: Jun. 2024 )
	=	73.882	/	( ( (2071.029 - 208.39)	+	(1963.028 - 170.874) )	/ 2 )
	=	73.882	/	( ( 1862.639	+	1792.154 )	/ 2 )
	=	73.882	/	1827.3965
	=	4.04 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

Zip Co (FRA:YRRA) 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.

Zip Co ROCE % Related Terms

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Zip Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Zip Co Ltd (FRA:YRRA) » Definitions » ROCE %

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Traded in Other Exchanges

ZIZTF:USA ZIP:Australia

Address

126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website

https://www.zip.co

Zip Co Ltd is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Majority of its products-Zip Pay, QuadPay (Zip U.S.), and PayFlex-do not charge interest based on outstanding balances. The company provides services in four countries around the world, Australia and New Zealand (ANZ), the United States, and Canada (Americas). The company's segments include ANZ, Americas, and Corporate.

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