ZKH (ZKH Group) ROCE % : -9.37% (As of Sep. 2024)

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What is ZKH Group 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. ZKH Group's annualized ROCE % for the quarter that ended in Sep. 2024 was -9.37%.

ZKH Group ROCE % Historical Data

The historical data trend for ZKH Group'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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ZKH Group ROCE % Chart

ZKH Group Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROCE %

-42.48

-20.82

-8.43

ZKH Group Quarterly Data
	Dec20	Dec21	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial						-12.34	3.40	-10.11	-7.23	-9.37

ZKH Group ROCE % Calculation

ZKH Group'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 )
	=	-39.966	/	( ( (977.34 - 499.481)	+	(1034.513 - 564.092) )	/ 2 )
	=	-39.966	/	( (477.859	+	470.421)	/ 2 )
	=	-39.966	/	474.14
	=	-8.43 %

ZKH Group's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	-43.072	/	( ( (964.783 - 504.27)	+	(952.74 - 493.564) )	/ 2 )
	=	-43.072	/	( ( 460.513	+	459.176 )	/ 2 )
	=	-43.072	/	459.8445
	=	-9.37 %

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

ZKH Group (NYSE:ZKH) 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.

ZKH Group ROCE % Related Terms

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ZKH Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » ZKH Group Ltd (NYSE:ZKH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 36 Shenbin Road, 7th Floor, Tower 4, Libao Plaza, Minhang District, Shanghai, CHN, 201106

Website

https://www.zkh.com

ZKH Group Ltd engages in providing MRO procurement service platform in China. It provides one-stop MRO procurement and management services for its customers, and offers digital and fulfillment solutions for participants along the industry value chain. It offers a broad range of MRO product offerings covering all MRO product lines on its platform, including spare parts, chemicals, manufacturing parts, general consumables, and office supplies. All of the Group's revenues are derived from the PRC.