InterContinental Hotels Group (InterContinental Hotels Group) EBIT

: $1,125 Mil (TTM As of Dec. 2023)

View and export this data going back to 2003. Start your Free Trial

InterContinental Hotels Group's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2023 was $524 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $1,125 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. InterContinental Hotels Group's annualized ROC % for the quarter that ended in Dec. 2023 was 15.51%. InterContinental Hotels Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 246.30%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. InterContinental Hotels Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 6.21%.

InterContinental Hotels Group EBIT Historical Data

The historical data trend for InterContinental Hotels Group's EBIT 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.

InterContinental Hotels Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

657.00

-141.00

500.00

661.00

1,125.00

InterContinental Hotels Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
EBIT																360.00	373.00	288.00	601.00	524.00

Competitive Comparison

For the Lodging subindustry, InterContinental Hotels Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.

InterContinental Hotels Group EV-to-EBIT Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where InterContinental Hotels Group's EV-to-EBIT falls into.

InterContinental Hotels Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1,125 Mil.

InterContinental Hotels Group (NYSE:IHG) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

InterContinental Hotels Group's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	942 * ( 1 - 34.31% )	/	( (3466	+	4514)	/ 2 )
=	618.7998	/	3990
=	15.51 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4152	-	626	-	( 713	-	max(0, 1489	-	1549	+	713	))
=	3466

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4813	-	360	-	( 1273	-	max(0, 2190	-	2129	+	1273	))
=	4514

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

2. Joel Greenblatt's definition of Return on Capital:

InterContinental Hotels Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1048	/	( ( (428 + max(-590, 0))	+	(423 + max(-808, 0)) )	/	2 )
=	1048	/	( ( 428	+	423 )	/	2 )
=	1048	/	425.5
=	246.30 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(776	+	4	+	23)	-	(626	+	0	+	767)
=	-590

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(580	+	5	+	168)	-	(360	+	0	+	1201)
=	-808

When net working capital is negative, 0 is used.

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

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

InterContinental Hotels Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	1125	/	18126.967
	=	6.21 %

InterContinental Hotels Group EBIT Related Terms

Thank you for viewing the detailed overview of InterContinental Hotels Group's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.

InterContinental Hotels Group (InterContinental Hotels Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » InterContinental Hotels Group PLC (NYSE:IHG) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

ICHGF:USA IHGl:UK IHG:UK IC1B:Germany I1HG34:Brazil

Address

1 Windsor Dials, Arthur Road, Windsor, Berkshire, GBR, SL4 1RS

Website

http://www.ihgplc.com

InterContinental Hotels Group operates 930,000 rooms across 18 brands addressing the midscale through luxury segments, as of Sept. 30, 2023. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in summer 2017 and closed on a 51% stake in Regent Hotels in July 2018. It acquired Six Senses in February 2019 and launched another midscale brand, Garner, in 2023. Managed and franchised represent 99% of total rooms. As of Sept. 30, 2023, the Americas represents 56% of total rooms, with greater China accounting for 18%; Europe, Asia, the Middle East, and Africa make up 26%.