Arco Platform (Arco Platform) ROCE % : 3.15% (As of Jun. 2023)

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What is Arco Platform 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. Arco Platform's annualized ROCE % for the quarter that ended in Jun. 2023 was 3.15%.

Arco Platform ROCE % Historical Data

The historical data trend for Arco Platform'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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Arco Platform ROCE % Chart

Arco Platform Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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-10.71

0.11

3.70

0.23

11.89

Arco Platform Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROCE %	Get a 7-Day Free Trial															20.15	-4.44	41.26	15.31	3.15

Arco Platform ROCE % Calculation

Arco Platform's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	96.159	/	( ( (1059.279 - 246.372)	+	(1096.848 - 292.368) )	/ 2 )
	=	96.159	/	( (812.907	+	804.48)	/ 2 )
	=	96.159	/	808.6935
	=	11.89 %

Arco Platform's ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	31.336	/	( ( (1307.246 - 342.869)	+	(1327.217 - 301.797) )	/ 2 )
	=	31.336	/	( ( 964.377	+	1025.42 )	/ 2 )
	=	31.336	/	994.8985
	=	3.15 %

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

Arco Platform (NAS:ARCE) 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.

Arco Platform ROCE % Related Terms

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Arco Platform (Arco Platform) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Arco Platform Ltd (NAS:ARCE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

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Address

Rua Augusta 2840, 9th Floor, Suite 91, Consolacao, Sao Paulo, SP, BRA, 01412-100

Website

https://www.arcoeducacao.com.br

Arco Platform Ltd provides a complete pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. Its turnkey curriculum solutions provide educational content in both printed and digital formats delivered through its platform to improve the learning process. Its operating segment includes Core Curriculum and Supplemental Solutions. It generates maximum revenue from the Core Curriculum segment. The Core Curriculum business segment provides solutions that address the Brazilian K-12 curriculum requirements through a personalized and interactive learning experience. Students Access content in various formats, such as digital, video, print, and other audiovisual formats that are aligned with the daily curriculum of their classes.