LKST (LookSmart Group) ROCE %: 12.85% (As of Jun. 2017)

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What is LookSmart Group ROCE %?

LookSmart Group LKST ROCE % is 12.85% as of Jun. 2017.

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. LookSmart Group's annualized ROCE % for the quarter that ended in Jun. 2017 was 12.85%.

LookSmart Group  (OTCPK:LKST) 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.

LookSmart Group ROCE % Related Terms

LookSmart Group ROCE % Historical Data

* Premium members only.

The historical data trend for LookSmart Group'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.

LookSmart Group ROCE % Chart

LookSmart Group Annual Data
Trend Dec14 Dec15 Dec16
ROCE %
-262.61 -169.51 -106.24

LookSmart Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
ROCE % Get a 7-Day Free Trial -162.36 -182.85 -149.64 -44.51 12.85

LookSmart Group ROCE % Calculation

LookSmart Group's annualized ROCE % for the fiscal year that ended in Dec. 2016 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2016 )  (A: Dec. 2015 )(A: Dec. 2016 )
=-0.988/( ( (4.539 - 3.233) + (3.938 - 3.384) )/ 2 )
=-0.988/( (1.306+0.554)/ 2 )
=-0.988/0.93
=-106.24 %

LookSmart Group's ROCE % of for the quarter that ended in Jun. 2017 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2017 )  (Q: Dec. 2016 )(Q: Jun. 2017 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2017 )  (Q: Dec. 2016 )(Q: Jun. 2017 )
=0.128/( ( (3.938 - 3.384) + (3.817 - 2.379) )/ 2 )
=0.128/( ( 0.554 + 1.438 )/ 2 )
=0.128/0.996
=12.85 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2017) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 12.85% mean?
LookSmart Group (LKST) has a ROCE % of 12.85% as of Jun. 2017.
Is LookSmart Group's ROCE % too high?
LookSmart Group's current ROCE % is 12.85%. The Interactive Media industry median ROCE % is 2.98. LookSmart Group's value of 12.85% is 331.2% above this industry median.
How does LookSmart Group's ROCE % compare to UBLI and WSCO?
LookSmart Group's ROCE % of 12.85% can be compared against companies in the Interactive Media industry. The industry median ROCE % is 2.98. LookSmart Group's value of 12.85% is 331.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Interactive Media company?
The median ROCE % among Interactive Media companies is 2.98, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LookSmart Group's current ROCE % of 12.85% is 331.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Interactive Media industry, the median ROCE % is 2.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LookSmart Group's current ROCE % is 12.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LookSmart Group stock overvalued right now?
LookSmart Group (LKST) has a current ROCE % of 12.85%. The current ROCE % is 12.85% and 331.2% above the Interactive Media industry median of 2.98. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For LookSmart Group (LKST), the current ROCE % is 12.85% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

LookSmart Group Business Description

Address 2850 West Horizon Ridge Parkway, Suite 200, Henderson, NV, USA, 89052
LookSmart Group Inc engages in providing digital advertising solutions. The company provides solutions for search and display advertising customers in a large online advertising ecosystem serving ads that target user queries on partner sites. It offers search advertising customers, and targeted search through a search advertising distribution network that uses the company's AdCenter platform technology. It offers advertisers the ability to buy graphical display advertising.