Xero

Xero ROCE

The Return on Capital Employed (ROCE) of Xero (XRO.AX) as of Nov 13, 2026 is 5.85 %. In the previous year, Return on Capital Employed (ROCE) was 3.46 % — a change of 69.26% (higher).

ROCE

5.85 %

YoY

69.26%

Last updated:

In 2026, Xero's return on capital employed (ROCE) was 5.85 %, a 69.26% increase from the 3.46 % ROCE in the previous year.

The Xero ROCE history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

ROCE
Date
ROCE
Jan 1, 2019
3.12 NZD
Jan 1, 2020
7.51 NZD
Jan 1, 2021
8.99 NZD
Jan 1, 2022
3.72 NZD
Jan 1, 2023
5.82 NZD
Jan 1, 2024
18.36 NZD
Jan 1, 2025
3.46 NZD
Jan 1, 2026
5.85 NZD
The Xero ROCE history
YEARROCEYoY
5.85 %+69.26%
3.46 %-81.17%
18.36 %+215.45%
5.82 %+56.62%
3.72 %-58.69%
8.99 %+19.69%
7.51 %+141.11%
3.12 %-139.35%
-7.92 %-75.98%
-32.97 %-1.45%
-33.45 %+35.36%
-24.71 %+63.48%
-15.12 %—

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Xero Stock analysis

What does Xero do? Xero Ltd is a company from New Zealand that was founded in 2006. The company offers a business software solution for cloud accounting, invoicing, order processing, and much more. The comprehensive offering from Xero allows companies and self-employed individuals of all sizes to easily manage their finances and accounting in one system. Xero was founded by Rod Drury and Hamish Edwards, who recognized the difficulties that small and medium-sized businesses face in effectively managing their finances. They wanted to develop an accounting software that was easy to use and fully available in the cloud. The company grew quickly and was able to raise significant funds through a series of investment rounds and share placements. Xero also opened an office in Canada in 2018 and has been steadily expanding its presence in North America since then. Currently, Xero has over 2 million subscribers in over 180 countries worldwide. The business model of Xero is based on a subscription software that customers pay for on a monthly basis. The company offers various pricing models, with monthly costs depending on the size of the company and the required features. Xero thus offers a scalable cloud software platform that can be used by small to larger companies. Xero also has an API integration and a comprehensive library of partner applications that run on the Xero cloud platform. Xero customers can connect their accounting functions with additional applications to automate and optimize their business. Xero offers a comprehensive suite of financial software solutions for small and medium-sized businesses in the areas of accounting, invoicing, and payment processing. Xero's core product is the accounting software, which allows companies to manage their finances from a single place. Xero's features include creating invoices, matching transactions, generating reports, and creating budget plans. With Xero, customers can create and send invoices electronically to clients. They can set payment periods to remind customers of overdue invoices. Xero also allows customers to accept payments directly online. Xero also offers payment solutions for businesses. Xero supports payment solutions such as PayPal, Stripe, Braintree, and many more. Xero offers a wide range of products that can streamline the accounting process for businesses. The products include accounting software, payroll software, invoicing and payment processing software, project management software, and tax software solutions. Xero offers a wide range of software solutions for businesses to optimize their financial management and automate accounting. The company has a rapidly growing global presence and is expected to be the leading cloud accounting software worldwide by user count, according to market researchers. Xero also offers a wide library of partner applications to meet the needs of its customers and optimize their businesses. Xero is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling Xero's Return on Capital Employed (ROCE)

Xero's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing Xero's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

Xero's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in Xero’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about Xero stock

Return on Capital Employed (ROCE) of Xero is 5.85 % in 2026.

Return on Capital Employed (ROCE) of Xero changed from 3.46 % to 5.85 %, representing a 69.26% change. The value is higher than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) Xero since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s Xero with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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