Hotel Property Investments (ASX:HPI) ROCE % : 3.73% (As of Dec. 2023)

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What is Hotel Property Investments 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. Hotel Property Investments's annualized ROCE % for the quarter that ended in Dec. 2023 was 3.73%.

Hotel Property Investments ROCE % Historical Data

The historical data trend for Hotel Property Investments'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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Hotel Property Investments ROCE % Chart

Hotel Property Investments Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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9.08

7.24

11.39

20.68

2.30

Hotel Property Investments 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															24.30	16.49	0.63	4.03	3.73

Hotel Property Investments ROCE % Calculation

Hotel Property Investments's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	28.832	/	( ( (1305.341 - 30.575)	+	(1265.694 - 29.99) )	/ 2 )
	=	28.832	/	( (1274.766	+	1235.704)	/ 2 )
	=	28.832	/	1255.235
	=	2.30 %

Hotel Property Investments'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 )
	=	46.236	/	( ( (1265.694 - 29.99)	+	(1277.002 - 35.069) )	/ 2 )
	=	46.236	/	( ( 1235.704	+	1241.933 )	/ 2 )
	=	46.236	/	1238.8185
	=	3.73 %

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

Hotel Property Investments (ASX:HPI) 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.

Hotel Property Investments ROCE % Related Terms

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Hotel Property Investments (ASX:HPI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Hotel Property Investments (ASX:HPI) » Definitions » ROCE %

Comparable Companies

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N/A

Address

60 City Road, Suite 2, Level 17, IBM Centre, Southbank, Melbourne, VIC, AUS, 3006

Website

https://www.hpitrust.com.au

Hotel Property Investments is an Australian REIT with a portfolio of freehold pub properties primarily in Queensland. Its portfolio is almost exclusively leased to Queensland Venue Co. on triple-net long-term leases where the tenant is responsible for outgoings (except land tax in Queensland), resulting in relatively low maintenance expenses. Most leases also provide for annual rental increases typically at the lower of 4% or two times the average of the last five years consumer price index.