Freshworks (STU:7DF) ROCE % : -11.40% (As of Mar. 2024)

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What is Freshworks 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. Freshworks's annualized ROCE % for the quarter that ended in Mar. 2024 was -11.40%.

Freshworks ROCE % Historical Data

The historical data trend for Freshworks'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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Freshworks ROCE % Chart

Freshworks Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

-13.28

-24.41

-28.07

-20.39

-14.99

Freshworks Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial												-17.29	-15.55	-14.06	-14.14	-11.40

Freshworks ROCE % Calculation

Freshworks'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 )
	=	-156.048	/	( ( (1302.924 - 256.477)	+	(1335.86 - 300.055) )	/ 2 )
	=	-156.048	/	( (1046.447	+	1035.805)	/ 2 )
	=	-156.048	/	1041.126
	=	-14.99 %

Freshworks'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 )
	=	-118.376	/	( ( (1335.86 - 300.055)	+	(1350.05 - 309.4) )	/ 2 )
	=	-118.376	/	( ( 1035.805	+	1040.65 )	/ 2 )
	=	-118.376	/	1038.2275
	=	-11.40 %

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

Freshworks (STU:7DF) 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.

Freshworks ROCE % Related Terms

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Freshworks (STU:7DF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Freshworks Inc (STU:7DF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

FRSH:USA 7DF:Germany

Address

2950 S. Delaware Street, Suite 201, San Mateo, CA, USA, 94403

Website

https://www.freshworks.com

Freshworks Inc provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. It offers solutions that serve the needs of users in the CX and ITSM categories and has also expanded its offering with Sales and Marketing automation products. These product offerings enable organizations to acquire, engage, and better serve their customers and employees. The group derives revenue from North America, Europe, the Middle East and Africa, Asia Pacific, and Other regions.

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