Latch (LTCH) ROCE %: -44.12% (As of Mar. 2022)

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LTCH Latch Inc LTCH
19 GF Score
Price $0.15
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What is Latch ROCE %?

Latch LTCH -20.75% 19 ROCE % is -44.12% as of Mar. 2022. GuruFocus rates LTCH with a GF Score™ of 19/100.

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. Latch's annualized ROCE % for the quarter that ended in Mar. 2022 was -44.12%.

Latch  (OTCPK:LTCH) 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.

Latch ROCE % Related Terms

Latch ROCE % Historical Data

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The historical data trend for Latch'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.

Latch ROCE % Chart

Latch Annual Data
Trend Dec19 Dec20 Dec21
ROCE %
0.00 -79.48 -60.73

Latch Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROCE % Get a 7-Day Free Trial -178.94 -17.98 -28.91 -55.87 -44.12
LTCH
19GF Score
Latch Inc LTCH
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Latch ROCE % Calculation

Latch's annualized ROCE % for the fiscal year that ended in Dec. 2021 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2021 )  (A: Dec. 2020 )(A: Dec. 2021 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2021 )  (A: Dec. 2020 )(A: Dec. 2021 )
=-148.568/( ( (89.609 - 11.857) + (452.304 - 40.771) )/ 2 )
=-148.568/( (77.752+411.533)/ 2 )
=-148.568/244.6425
=-60.73 %

Latch's ROCE % of for the quarter that ended in Mar. 2022 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2022 )  (Q: Dec. 2021 )(Q: Mar. 2022 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2022 )  (Q: Dec. 2021 )(Q: Mar. 2022 )
=-173.4/( ( (452.304 - 40.771) + (415.115 - 40.59) )/ 2 )
=-173.4/( ( 411.533 + 374.525 )/ 2 )
=-173.4/393.029
=-44.12 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2022) 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 -44.12% mean?
Latch (LTCH) has a ROCE % of -44.12% as of Mar. 2022.
Is Latch's ROCE % too high?
Latch's current ROCE % is -44.12%. Overall, Latch has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Latch's ROCE % compare to AVYA and BNFT?
Latch's ROCE % of -44.12% can be compared against companies in the Software industry. The industry median ROCE % is 5.41. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.41, based on 2,722 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. 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 Software industry, the median ROCE % is 5.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Latch's current ROCE % is -44.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Latch stock overvalued right now?
Latch (LTCH) has a current ROCE % of -44.12%. The current ROCE % is -44.12%. Latch's overall GF Score™ is 19/100. 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 Latch (LTCH), the current ROCE % is -44.12% as of Mar. 2022. 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.

Latch Business Description

Address 1220 North Price Road, Suite 2, Olivette, MO, USA, 63132
Latch Inc is a technology company delivering an integrated ecosystem of hardware, software and services designed to enhance operations and experiences within buildings, serving the multifamily rental market. Its core offering is built around a proprietary, cloud-based software-as-a-service (SaaS) platform (the DOOR Platform) that powers and manages the suite of smart access control devices (including locks, readers and intercoms) and smart home devices and integrates with other connected devices within a building. The company generates the majority of revenue revenue through the license of its SaaS over the cloud-based platform on a subscription-based arrangement. Geographically, the company operates in single segment being USA.
19GF Score

Get the complete analysis for LTCH

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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