GURUFOCUS.COM » STOCK LIST » Technology » Software » Shopify Inc (NYSE:SHOP) » Definitions » ROCE %

Shopify (Shopify) ROCE % : 3.34% (As of Mar. 2024)


View and export this data going back to 2015. Start your Free Trial

What is Shopify 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. Shopify's annualized ROCE % for the quarter that ended in Mar. 2024 was 3.34%.


Shopify ROCE % Historical Data

The historical data trend for Shopify'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.

* Premium members only.

Shopify ROCE % Chart

Shopify Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.62 4.74 31.48 -7.29 -0.77

Shopify Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -7.73 -12.53 5.29 11.55 3.34

Shopify ROCE % Calculation

Shopify'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 )
=-78/( ( (10757 - 856) + (11299 - 898) )/ 2 )
=-78/( (9901+10401)/ 2 )
=-78/10151
=-0.77 %

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

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=344/( ( (11299 - 898) + (11112 - 902) )/ 2 )
=344/( ( 10401 + 10210 )/ 2 )
=344/10305.5
=3.34 %

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


Shopify  (NYSE:SHOP) 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.


Shopify ROCE % Related Terms

Thank you for viewing the detailed overview of Shopify's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify (Shopify) Business Description

Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify (Shopify) Headlines

From GuruFocus

Egerton Capital (UK) LLP Buys 1, Sells 4 in 1st Quarter

By GuruFocus Research GuruFocus Editor 08-04-2022

MORGENS WATERFALL VINTIADIS & CO INC Buys 3, Sells 2 in 1st Quarter

By GuruFocus Research GuruFocus Editor 05-18-2022

Shopify Inc's Stock Performance: A Comprehensive Analysis

By GuruFocus Research 11-27-2023

Top 5 2nd Quarter Trades of Steve Mandel

By GuruFocus Research GuruFocus Editor 08-15-2022

Leith Wheeler Investment Funds' 2nd-Quarter Review

By Sydnee Gatewood 08-08-2022

Shopify: Great Business, Horrible Price

By Jonathan Poland 02-17-2023

Shopify's Growth Is Far From Over

By Dilantha De Silva 09-21-2023