GHG (GreenTree Hospitality Group) ROCE % : 9.26% (As of Sep. 2024)

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What is GreenTree Hospitality 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. GreenTree Hospitality Group's annualized ROCE % for the quarter that ended in Sep. 2024 was 9.26%.

GreenTree Hospitality Group ROCE % Historical Data

The historical data trend for GreenTree Hospitality 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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GreenTree Hospitality Group ROCE % Chart

GreenTree Hospitality Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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23.13

11.84

6.43

-12.09

9.90

GreenTree Hospitality Group Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															16.19	3.94	8.78	9.31	9.26

GreenTree Hospitality Group ROCE % Calculation

GreenTree Hospitality 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 )
	=	55.24	/	( ( (815.281 - 221.478)	+	(709.616 - 187.893) )	/ 2 )
	=	55.24	/	( (593.803	+	521.723)	/ 2 )
	=	55.24	/	557.763
	=	9.90 %

GreenTree Hospitality Group's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	50.456	/	( ( (706.216 - 163.784)	+	(720.72 - 173.364) )	/ 2 )
	=	50.456	/	( ( 542.432	+	547.356 )	/ 2 )
	=	50.456	/	544.894
	=	9.26 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

GreenTree Hospitality Group (NYSE:GHG) 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.

GreenTree Hospitality Group ROCE % Related Terms

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GreenTree Hospitality Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » GreenTree Hospitality Group Ltd (NYSE:GHG) » Definitions » ROCE %

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GT1A:Germany

Address

1228 Zhongshan North Road, Putuo District, Shanghai, CHN, 200065

Website

https://www.998.com

GreenTree Hospitality Group Ltd is a franchised hotel operator in China as franchised and managed hotels represent almost all the hotels in its hotel network. The hotel network of the company comprised approximately 4,059 hotels with nearly 302,497 rooms in China, covering all centrally administrated municipalities and cities throughout all provinces and autonomous regions in China. The company operates its hotels under GreenTree Inns, GreenTree Eastern, Gme, Gya and VX, GreenTree Alliance, Vatica, and others. The company operates solely in China and generates all its revenue from China itself.