PPHE Hotel Group (LSE:PPH) ROCE % : 5.06% (As of Dec. 2023)

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What is PPHE Hotel Group 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. PPHE Hotel Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.06%.

PPHE Hotel Group ROCE % Historical Data

The historical data trend for PPHE Hotel 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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PPHE Hotel Group ROCE % Chart

PPHE Hotel Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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4.68

-4.10

-1.71

2.80

3.68

PPHE Hotel Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %	Get a 7-Day Free Trial															0.96	-0.93	6.43	2.33	5.06

PPHE Hotel Group ROCE % Calculation

PPHE Hotel Group'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 )
	=	64.467	/	( ( (1860.217 - 141.51)	+	(1923.765 - 141.795) )	/ 2 )
	=	64.467	/	( (1718.707	+	1781.97)	/ 2 )
	=	64.467	/	1750.3385
	=	3.68 %

PPHE Hotel Group's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Jun. 2023 )		(Q: Dec. 2023 )
	=	88.804	/	( ( (1884.667 - 155.275)	+	(1923.765 - 141.795) )	/ 2 )
	=	88.804	/	( ( 1729.392	+	1781.97 )	/ 2 )
	=	88.804	/	1755.681
	=	5.06 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

PPHE Hotel Group (LSE:PPH) 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.

PPHE Hotel Group ROCE % Related Terms

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PPHE Hotel Group (LSE:PPH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » PPHE Hotel Group Ltd (LSE:PPH) » Definitions » ROCE %

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Traded in Other Exchanges

PPHl:UK 32P:Germany

Address

Radarweg 60, Motion Building, 9th Floor, Amsterdam, NH, NLD, 1043 NT

Website

http://www.pphe.com

PPHE Hotel Group Ltd engages in providing hospitality services. The company owns, manages and franchises hotels and resort properties in the United Kingdom, the Netherlands, Croatia, Germany, and Hungary. These properties are operated under the brands, Park Plaza Hotels & Resorts and art'otel in the form of hotels, restaurants, bars and spas and Holmes Hotel London. The group's activities are divided into two segments Owned Hotel Operations segment and the Management Activities segment. PPHE generates most of its revenues across the United Kingdom through hotel operations, management fees derived from hotels managed by the group, and marketing fees.