InterContinental Hotels Group (InterContinental Hotels Group) ROCE % : 39.65% (As of Dec. 2023)

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What is InterContinental Hotels 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. InterContinental Hotels Group's annualized ROCE % for the quarter that ended in Dec. 2023 was 39.65%.

InterContinental Hotels Group ROCE % Historical Data

The historical data trend for InterContinental Hotels 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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InterContinental Hotels Group ROCE % Chart

InterContinental Hotels Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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23.11

-4.72

15.96

22.94

42.49

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
ROCE %	Get a 7-Day Free Trial															22.71	24.08	19.94	45.06	39.65

InterContinental Hotels Group ROCE % Calculation

InterContinental Hotels Group'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 )
	=	1125	/	( ( (4216 - 1544)	+	(4813 - 2190) )	/ 2 )
	=	1125	/	( (2672	+	2623)	/ 2 )
	=	1125	/	2647.5
	=	42.49 %

InterContinental Hotels Group'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 )
	=	1048	/	( ( (4152 - 1489)	+	(4813 - 2190) )	/ 2 )
	=	1048	/	( ( 2663	+	2623 )	/ 2 )
	=	1048	/	2643
	=	39.65 %

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

InterContinental Hotels Group (NYSE:IHG) 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.

InterContinental Hotels Group ROCE % Related Terms

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InterContinental Hotels Group (InterContinental Hotels Group) Business Description

Industry

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

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%.