Tri Pointe Homes (FRA:T86) ROCE % : 9.76% (As of Mar. 2024)

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What is Tri Pointe Homes 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. Tri Pointe Homes's annualized ROCE % for the quarter that ended in Mar. 2024 was 9.76%.

Tri Pointe Homes ROCE % Historical Data

The historical data trend for Tri Pointe Homes'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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Tri Pointe Homes ROCE % Chart

Tri Pointe Homes Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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6.97

9.54

15.95

18.43

9.15

Tri Pointe Homes 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															8.37	6.32	7.74	14.66	9.76

Tri Pointe Homes ROCE % Calculation

Tri Pointe Homes'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 )
	=	392.485	/	( ( (4455.623 - 184.8)	+	(4506.677 - 194.388) )	/ 2 )
	=	392.485	/	( (4270.823	+	4312.289)	/ 2 )
	=	392.485	/	4291.556
	=	9.15 %

Tri Pointe Homes'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 )
	=	424.292	/	( ( (4506.677 - 194.388)	+	(4572.377 - 192.578) )	/ 2 )
	=	424.292	/	( ( 4312.289	+	4379.799 )	/ 2 )
	=	424.292	/	4346.044
	=	9.76 %

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

Tri Pointe Homes (FRA:T86) 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.

Tri Pointe Homes ROCE % Related Terms

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Tri Pointe Homes (FRA:T86) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Homebuilding & Construction » Tri Pointe Homes Inc (FRA:T86) » Definitions » ROCE %

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TPH:USA

Address

940 Southwood Boulevard, Suite 200, Incline Village, Irvine, CA, USA, 89451

Website

https://www.tripointehomes.com

Tri Pointe Homes Inc is an American construction company that focuses on residential construction. The company designs and builds single-family homes and condominiums through its portfolio of six regional housing brands. Its largest regional brands include Maracay Homes, which operates in Arizona, and TRI Pointe and Pardee Homes, which operate in California, Nevada, and Colorado. From a geographic perspective, California is TRI Pointe's largest source of revenue, followed by Arizona and Nevada. The company also operates in Texas, Oregon, and Virginia. TRI Pointe completes approximately 4,000 homes annually with an average selling price around $500,000. TRI Pointe also is involved in the sale and development of land.

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