XP (XP) ROCE % : 3.90% (As of Dec. 2023)

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What is XP 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. XP's annualized ROCE % for the quarter that ended in Dec. 2023 was 3.90%.

XP ROCE % Historical Data

The historical data trend for XP'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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XP ROCE % Chart

XP Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.65

8.46

7.64

5.27

4.47

XP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															4.11	3.91	3.73	4.10	3.90

XP ROCE % Calculation

XP'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 )
	=	929.39	/	( ( (36610.099 - 20093.677)	+	(50826.703 - 25783.076) )	/ 2 )
	=	929.39	/	( (16516.422	+	25043.627)	/ 2 )
	=	929.39	/	20780.0245
	=	4.47 %

XP's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	948.64	/	( ( (47264.932 - 23680.904)	+	(50826.703 - 25783.076) )	/ 2 )
	=	948.64	/	( ( 23584.028	+	25043.627 )	/ 2 )
	=	948.64	/	24313.8275
	=	3.90 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

XP (NAS:XP) 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.

XP ROCE % Related Terms

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XP (XP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » XP Inc (NAS:XP) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

XP:Mexico XP9:Germany XP9:Germany XPBR31:Brazil

Address

Avenue Chedid Jafet, 75, Torre Sul, 30th floor, Vila Olimpia, Sao Paulo, SP, BRA, 04551-065

Website

https://www.xpinc.com

XP Inc is a Cayman Island-based technology-driven financial services platform. It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment such as monitoring operations, making decisions on fund allocation, and evaluating the performance. It generates revenue through the Brokerage commission.