5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
RLJ Lodging Trust's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was 7.93%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for RLJ Lodging Trust's 5-Year ROIIC % or its related term are showing as below:
RLJ's 5-Year ROIIC % is ranked better than 78.13% of 599
companies
in the REITs industry
Industry Median: 3.68
vs RLJ: 7.93
RLJ Lodging Trust 5-Year ROIIC % Historical Data
The historical data trend for RLJ Lodging Trust's 5-Year ROIIC % 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.
Competitive Comparison of RLJ Lodging Trust's 5-Year ROIIC %
For the REIT - Hotel & Motel subindustry, RLJ Lodging Trust's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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.
RLJ Lodging Trust's 5-Year ROIIC % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, RLJ Lodging Trust's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where RLJ Lodging Trust's 5-Year ROIIC % falls into.
RLJ Lodging Trust 5-Year ROIIC % Calculation
RLJ Lodging Trust's 5-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 150.123462 (Dec. 2023) - 246.7436 (Dec. 2018) )
/
( 4279.754 (Dec. 2023) - 5498.007 (Dec. 2018) )
=
-96.620138
/
-1218.253
=
7.93%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
RLJ Lodging Trust 5-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of RLJ Lodging Trust's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
RLJ Lodging Trust (RLJ Lodging Trust) Business Description
RLJ Lodging Trust is a real estate investment trust that acquires focused-service and compact full-service hotels. Its portfolio consists of hotels in various states across the United States and the District of Columbia. Its hotels are under the Marriott, Hilton, and Hyatt brand names. These hotels are concentrated in urban areas, dense suburban markets, and business districts within metropolitan areas where utmost of their customers are business, leisure, and other travelers. Its revenue streams include hotel operations revenue, which is composed of the sale of rooms, food, and beverages, and other property revenue. The company derives the substantial majority of its revenue from the operation of hotels.
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