Trip.com Group (Trip.com Group) ROCE %

: 13.64% (As of Sep. 2023)

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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. Trip.com Group's annualized ROCE % for the quarter that ended in Sep. 2023 was 13.64%.

Trip.com Group ROCE % Historical Data

The historical data trend for Trip.com Group'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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Trip.com Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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8.60

0.39

0.87

3.10

9.09

Trip.com Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															9.04	13.16	4.33	13.64	5.18

Trip.com Group ROCE % Calculation

Trip.com Group'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 )
	=	595.12	/	( ( (30122.462 - 10396.433)	+	(27495.589 - 8783.941) )	/ 2 )
	=	595.12	/	( (19726.029	+	18711.648)	/ 2 )
	=	595.12	/	19218.8385
	=	3.10 %

Trip.com Group's ROCE % of for the quarter that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2023 )		(Q: Jun. 2023 )		(Q: Sep. 2023 )
	=	2738.872	/	( ( (30471.137 - 10567.347)	+	(31174.996 - 10928.897) )	/ 2 )
	=	2738.872	/	( ( 19903.79	+	20246.099 )	/ 2 )
	=	2738.872	/	20074.9445
	=	13.64 %

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

Trip.com Group (NAS:TCOM) 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.

Trip.com Group ROCE % Related Terms

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Trip.com Group (Trip.com Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Trip.com Group Ltd (NAS:TCOM) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TRPCF:USA 09961:Hong Kong 0I50:UK CLVB:Germany CLVB:Germany CLV:Germany CLV:Germany CRIP34:Brazil

Address

968 Jin Zhong Road, Shanghai, CHN, 200335

Website

https://www.ctrip.com

Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of revenue comes from package tours and corporate travel. Prior to the pandemic in 2019, the company generated 25% of revenue from international business, which is important to its margin expansion. Most of sales come from websites and mobile platforms, while the rest come from call centers. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.