CLP Holdings (CLP Holdings) ROCE %

: 5.73% (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. CLP Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.73%.

CLP Holdings ROCE % Historical Data

The historical data trend for CLP Holdings'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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CLP Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

5.56

9.06

6.39

1.67

6.59

CLP Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROCE %																5.83	-7.03	10.67	7.37	5.73

CLP Holdings ROCE % Calculation

CLP Holdings'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 )
	=	1596.968	/	( ( (30316.49 - 5710.818)	+	(29328.664 - 5439.192) )	/ 2 )
	=	1596.968	/	( (24605.672	+	23889.472)	/ 2 )
	=	1596.968	/	24247.572
	=	6.59 %

CLP Holdings'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 )
	=	1382.622	/	( ( (29992.851 - 5583.684)	+	(29328.664 - 5439.192) )	/ 2 )
	=	1382.622	/	( ( 24409.167	+	23889.472 )	/ 2 )
	=	1382.622	/	24149.3195
	=	5.73 %

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

CLP Holdings (OTCPK:CLPHY) 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.

CLP Holdings ROCE % Related Terms

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CLP Holdings (CLP Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » CLP Holdings Ltd (OTCPK:CLPHY) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CLPHF:USA 00002:Hong Kong CLP:Germany

Address

8 Laguna Verde Avenue, Hung Hom, Kowloon, Hong Kong, HKG

Website

https://www.clpgroup.com

CLP Holdings is the larger of the two electric utility companies in Hong Kong, serving 80% of the city population. It generates, transmits and distributes electricity to about 2.6 million customers in Kowloon and the New Territories through its wholly owned network. The business is regulated by the Hong Kong government with a permitted return on net fixed asset of 8.00%. Besides Hong Kong, the company has expanded its reach overseas, with generation and retail assets in Australia and generation assets in China, India, Taiwan, and Southeast Asia. Its Hong Kong activities made up more than 80% of recurring net profit in 2021.

CLP Holdings (CLP Holdings) Headlines

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