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MercadoLibre ROIC

What is the ROIC of MercadoLibre?

The ROIC of MercadoLibre, Inc. is 1.94%

What is the definition of ROIC?



Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.

= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)

Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.

ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.

You can calculate ROIC with the following formula:


NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity

The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.

ROIC of companies in the Consumer Discretionary sector on XETRA compared to MercadoLibre

What does MercadoLibre do?

MercadoLibre, Inc. operates online commerce platforms in Latin America. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases online; and Mercado Pago, a FinTech solution, the fintech solution, that enables individuals and businesses to send and receive online payments, as well as allows users to transfer money through their websites and mobile applications. The company also offers Mercado Fondo that allows users to invest funds deposited in their Mercado Pago accounts; Mercado Credito that extends loans to certain merchants and consumers; and Mercado Envios logistics solution that enables sellers on its platform to utilize third-party carriers and other logistics service providers, as well as fulfillment and warehousing services for sellers. In addition, it provides Mercado Libre Classifieds, an online classified listing service, where users can list and purchase motor vehicles, real estate, and services; Mercado Libre Ads, an advertising platform, which enables large retailers and brands to promote their products and services on the Internet; and Mercado Shops, an online storefronts solution, that enables users to set-up, manage, and promote their own Webstores. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay.

Companies with roic similar to MercadoLibre