Homeinns Hotel Group (Homeinns Hotel Group) ROCE % : 13.38% (As of Sep. 2015)

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What is Homeinns 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. Homeinns Hotel Group's annualized ROCE % for the quarter that ended in Sep. 2015 was 13.38%.

Homeinns Hotel Group ROCE % Historical Data

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

Homeinns Hotel Group Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROCE %

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9.81

3.21

6.16

10.87

5.33

Homeinns Hotel Group Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
ROCE %	Get a 7-Day Free Trial															8.14	-1.22	7.64	13.38	2.13

Homeinns Hotel Group ROCE % Calculation

Homeinns Hotel Group's annualized ROCE % for the fiscal year that ended in Dec. 2014 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2014 )		(A: Dec. 2013 )		(A: Dec. 2014 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2014 )		(A: Dec. 2013 )		(A: Dec. 2014 )
	=	128.05	/	( ( (1589.233 - 301.617)	+	(1518.065 - 450.056) )	/ 2 )
	=	128.05	/	( (1287.616	+	1068.009)	/ 2 )
	=	128.05	/	1177.8125
	=	10.87 %

Homeinns Hotel Group's ROCE % of for the quarter that ended in Sep. 2015 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2015 )		(Q: Jun. 2015 )		(Q: Sep. 2015 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2015 )		(Q: Jun. 2015 )		(Q: Sep. 2015 )
	=	143.704	/	( ( (1497.208 - 415.692)	+	(1510.441 - 443.443) )	/ 2 )
	=	143.704	/	( ( 1081.516	+	1066.998 )	/ 2 )
	=	143.704	/	1074.257
	=	13.38 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2015) EBIT data.

Homeinns Hotel Group (NAS:HMIN) 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.

Homeinns Hotel Group ROCE % Related Terms

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Homeinns Hotel Group (Homeinns Hotel Group) Business Description

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Website

http://www.homeinns.com

Homeinns Hotel Group was incorporated in the Cayman Islands on May 2006. The Company develops and operates economy hotels across China under its "Home Inn", "Yitel" and its recently acquired "Motel 168" brands. As of December 31, 2013, the Company had 2,180 hotels in operation, including 872 leased-and-operated hotels and 1,308 franchised-and-managed hotels, with approximately 256,555 rooms located in 287 cities across China, and an additional 161 hotels under development. It competes with other economy hotel chains, such as Jinjiang Star, 7 Days Inn, Han Ting, Green Tree Inn and Super 8, as well as various regional and local economy hotel chains.

Homeinns Hotel Group (Homeinns Hotel Group) Headlines

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