GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Constantinou Bros Hotels Ltd (CYS:CBH) » Definitions » ROIC %

Constantinou Bros Hotels (CYS:CBH) ROIC % : 10.28% (As of Dec. 2023)


View and export this data going back to 2000. Start your Free Trial

What is Constantinou Bros Hotels ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Constantinou Bros Hotels's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 10.28%.

As of today (2024-05-12), Constantinou Bros Hotels's WACC % is 4.03%. Constantinou Bros Hotels's ROIC % is 5.46% (calculated using TTM income statement data). Constantinou Bros Hotels generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Constantinou Bros Hotels ROIC % Historical Data

The historical data trend for Constantinou Bros Hotels's ROIC % 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.

* Premium members only.

Constantinou Bros Hotels ROIC % Chart

Constantinou Bros Hotels Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.34 -4.95 0.23 3.86 5.42

Constantinou Bros Hotels Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.56 -0.28 8.40 0.81 10.28

Competitive Comparison of Constantinou Bros Hotels's ROIC %

For the Lodging subindustry, Constantinou Bros Hotels's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Constantinou Bros Hotels's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Constantinou Bros Hotels's ROIC % distribution charts can be found below:

* The bar in red indicates where Constantinou Bros Hotels's ROIC % falls into.



Constantinou Bros Hotels ROIC % Calculation

Constantinou Bros Hotels's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=11.249 * ( 1 - 2.73% )/( (201.91 + 202.182)/ 2 )
=10.9419023/202.046
=5.42 %

where

Constantinou Bros Hotels's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=20.95 * ( 1 - 2.07% )/( (196.94 + 202.182)/ 2 )
=20.516335/199.561
=10.28 %

where

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

* 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.


Constantinou Bros Hotels  (CYS:CBH) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Constantinou Bros Hotels's WACC % is 4.03%. Constantinou Bros Hotels's ROIC % is 5.46% (calculated using TTM income statement data). Constantinou Bros Hotels generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases. Constantinou Bros Hotels earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Constantinou Bros Hotels ROIC % Related Terms

Thank you for viewing the detailed overview of Constantinou Bros Hotels's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Constantinou Bros Hotels (CYS:CBH) Business Description

Traded in Other Exchanges
N/A
Address
77, Poseidonos Street, P.O.Box 60182, Kato Pafos, CYP, 8101
Constantinou Bros Hotels Ltd is a Cyprus-based company engaged in the hotel industry. It owns and manages the following hotels: Athena Beach Hotel, Athena Royal Beach Hotel, Pioneer Beach Hotel, and Asimina Suites Hotel. It offers a range of holiday services, organization of weddings and events, as well as an equipped conference center.