The RealReal (FRA:6RR) ROCE % : -44.08% (As of Mar. 2024)

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What is The RealReal 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. The RealReal's annualized ROCE % for the quarter that ended in Mar. 2024 was -44.08%.

The RealReal ROCE % Historical Data

The historical data trend for The RealReal'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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The RealReal ROCE % Chart

The RealReal Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-49.72

-40.76

-43.28

-39.55

-46.44

The RealReal 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															-86.18	-49.53	-28.79	-28.12	-44.08

The RealReal ROCE % Calculation

The RealReal'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 )
	=	-144.416	/	( ( (581.165 - 195.892)	+	(409.828 - 173.186) )	/ 2 )
	=	-144.416	/	( (385.273	+	236.642)	/ 2 )
	=	-144.416	/	310.9575
	=	-46.44 %

The RealReal'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 )
	=	-100.388	/	( ( (409.828 - 173.186)	+	(397.053 - 178.193) )	/ 2 )
	=	-100.388	/	( ( 236.642	+	218.86 )	/ 2 )
	=	-100.388	/	227.751
	=	-44.08 %

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

The RealReal (FRA:6RR) 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.

The RealReal ROCE % Related Terms

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The RealReal (FRA:6RR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The RealReal Inc (FRA:6RR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

REAL:USA

Address

55 Francisco Street, Suite 400, San Francisco, CA, USA, 94133

Website

https://www.therealreal.com

The RealReal is the largest luxury resale platform in the U.S., generating $1.8 billion in 2022 gross merchandise volume and addressing a niche (personal luxury resale) that had previously been serviced by inefficient upscale boutiques and local pawn shops. The firm generates revenue via consignment and first-party sales on its online marketplace, and through direct sales across its brick-and-mortar footprint. With a hands-on approach that actively sources inventory and authenticates every item on its platform, The RealReal is able to justify much higher take rates than peers, working out to roughly 35% of net merchandise value, which excludes returns, cancellations, and first-party sales.

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