Hilton Worldwide Holdings (MIL:1HLT) ROCE % : 20.98% (As of Sep. 2024)

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What is Hilton Worldwide Holdings 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. Hilton Worldwide Holdings's annualized ROCE % for the quarter that ended in Sep. 2024 was 20.98%.

Hilton Worldwide Holdings ROCE % Historical Data

The historical data trend for Hilton Worldwide 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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Hilton Worldwide Holdings ROCE % Chart

Hilton Worldwide Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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14.29

-3.59

7.44

18.07

17.84

Hilton Worldwide Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															22.67	13.51	16.67	24.86	20.98

Hilton Worldwide Holdings ROCE % Calculation

Hilton Worldwide 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 )
	=	1977.052	/	( ( (14643.328 - 3183.168)	+	(14122.717 - 3413.074) )	/ 2 )
	=	1977.052	/	( (11460.16	+	10709.643)	/ 2 )
	=	1977.052	/	11084.9015
	=	17.84 %

Hilton Worldwide Holdings'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 )
	=	2274.124	/	( ( (14619.673 - 3925.954)	+	(15036.789 - 4046.391) )	/ 2 )
	=	2274.124	/	( ( 10693.719	+	10990.398 )	/ 2 )
	=	2274.124	/	10842.0585
	=	20.98 %

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

Hilton Worldwide Holdings (MIL:1HLT) 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.

Hilton Worldwide Holdings ROCE % Related Terms

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Hilton Worldwide Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Hilton Worldwide Holdings Inc (MIL:1HLT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HLT:USA HLT:Mexico 0J5I:UK HI91:Germany H1LT34:Brazil HLTW:Austria

Address

7930 Jones Branch Drive, Suite 1100, McLean, VA, USA, 22102

Website

https://www.hilton.com

Hilton Worldwide Holdings operates more than 1.2 million rooms across its more than 20 brands serving the premium economy scale through luxury segments. Hampton and Hilton are the two largest brands, representing 28% and 19%, respectively, of the company's total rooms, as of Dec. 31, 2023. Recent brands launched over the last few years include Home2, Curio, Canopy, Spark, Tru, Tempo, and LivSmart, as well as a partnership with Small Luxury Hotels and acquisitions of Nomad and Graduate Hotels. Managed and franchised hotels represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.

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