Spotify Technology (XTER:639) ROCE % : 29.02% (As of Dec. 2024)

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What is Spotify Technology 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. Spotify Technology's annualized ROCE % for the quarter that ended in Dec. 2024 was 29.02%.

Spotify Technology ROCE % Historical Data

The historical data trend for Spotify Technology'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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Spotify Technology ROCE % Chart

Spotify Technology Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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-21.44

8.14

-8.16

-11.15

23.32

Spotify Technology Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															-11.98	15.63	19.94	25.98	29.02

Spotify Technology ROCE % Calculation

Spotify Technology's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	1377	/	( ( (8346 - 4090)	+	(12005 - 4450) )	/ 2 )
	=	1377	/	( (4256	+	7555)	/ 2 )
	=	1377	/	5905.5
	=	23.32 %

Spotify Technology's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	2032	/	( ( (10553 - 4106)	+	(12005 - 4450) )	/ 2 )
	=	2032	/	( ( 6447	+	7555 )	/ 2 )
	=	2032	/	7001
	=	29.02 %

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

Spotify Technology (XTER:639) 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.

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Spotify Technology Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Spotify Technology SA (XTER:639) » Definitions » ROCE %

Comparable Companies

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SPOT:USA SPOT:Mexico 1SPOT:Italy 0SPT:UK S1PO34:Brazil SPOT:Austria

Address

Regeringsgatan 19, Stockholm, SWE, 111 53

Website

https://www.spotify.com

Spotify is the leading global music streaming service provider, with nearly 700 million monthly active users and over 250 million paying subscribers, with the latter comprising the firm's premium segment. most of the firm's revenue and nearly all its gross profit come from the subscribers, who pay a monthly fee to access a very comprehensive music library that consists of most of the most popular songs ever recorded, including all from the major record labels. The firm also sells separate audiobook subscriptions and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog but cannot customize a similar on-demand experience.

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