Hochtief AG (Hochtief AG) ROCE %

: 12.72% (As of Dec. 2023)

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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. Hochtief AG's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.72%.

Hochtief AG ROCE % Historical Data

The historical data trend for Hochtief AG'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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Hochtief AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

19.99

17.95

8.81

12.24

13.95

Hochtief AG Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																10.30	15.04	15.28	13.19	12.72

Hochtief AG ROCE % Calculation

Hochtief AG's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	1070.32	/	( ( (19385.23 - 11702.546)	+	(20726.481 - 13060.478) )	/ 2 )
	=	1070.32	/	( (7682.684	+	7666.003)	/ 2 )
	=	1070.32	/	7674.3435
	=	13.95 %

Hochtief AG'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	980.444	/	( ( (19967.932 - 12215.321)	+	(20726.481 - 13060.478) )	/ 2 )
	=	980.444	/	( ( 7752.611	+	7666.003 )	/ 2 )
	=	980.444	/	7709.307
	=	12.72 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Hochtief AG (OTCPK:HOCFF) 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.

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Hochtief AG (Hochtief AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Hochtief AG (OTCPK:HOCFF) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

1HOT:Italy HOTd:UK 0EPW:UK HOT:Germany HOT:Austria

Address

Alfredstrasse 236, Essen, NW, DEU, 45133

Website

https://www.hochtief.com

Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where most of the company's assets are located.