Rapid7 (LTS:0KTX) ROCE % : 5.83% (As of Mar. 2024)

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What is Rapid7 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. Rapid7's annualized ROCE % for the quarter that ended in Mar. 2024 was 5.83%.

Rapid7 ROCE % Historical Data

The historical data trend for Rapid7'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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Rapid7 ROCE % Chart

Rapid7 Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-11.50

-15.51

-17.54

-13.45

-9.65

Rapid7 Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															-10.87	-30.23	-8.35	8.18	5.83

Rapid7 ROCE % Calculation

Rapid7'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 )
	=	-85.078	/	( ( (1358.991 - 531.267)	+	(1505.348 - 569.792) )	/ 2 )
	=	-85.078	/	( (827.724	+	935.556)	/ 2 )
	=	-85.078	/	881.64
	=	-9.65 %

Rapid7'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 )
	=	55.412	/	( ( (1505.348 - 569.792)	+	(1488.473 - 524.065) )	/ 2 )
	=	55.412	/	( ( 935.556	+	964.408 )	/ 2 )
	=	55.412	/	949.982
	=	5.83 %

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

Rapid7 (LTS:0KTX) 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.

Rapid7 ROCE % Related Terms

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Rapid7 (LTS:0KTX) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Rapid7 Inc (LTS:0KTX) » Definitions » ROCE %

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RPD:USA R7D:Germany

Address

120 Causeway Street, Boston, MA, USA, 02114

Website

https://www.rapid7.com

Founded in 2000, Rapid7 is a cybersecurity company that began providing vulnerability management solutions. It has, however, expanded its portfolio to provide extended detection and response, or XDR; security information and event management, or SIEM; cloud security, threat intelligence, and application security; and security orchestration, automation, and response, or SOAR. The Boston-based company went public in 2015.

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