Hydro One (TSX:H) ROCE % : 7.46% (As of Sep. 2024)

View and export this data going back to 2015. Start your Free Trial

What is Hydro One 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. Hydro One's annualized ROCE % for the quarter that ended in Sep. 2024 was 7.46%.

Hydro One ROCE % Historical Data

The historical data trend for Hydro One'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.

* Premium members only.

Hydro One ROCE % Chart

Hydro One Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

Get a 7-Day Free Trial

5.38

5.73

5.86

6.60

6.36

Hydro One 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															7.41	4.61	6.60	6.59	7.46

Hydro One ROCE % Calculation

Hydro One'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 )
	=	1842	/	( ( (31457 - 3652)	+	(32852 - 2720) )	/ 2 )
	=	1842	/	( (27805	+	30132)	/ 2 )
	=	1842	/	28968.5
	=	6.36 %

Hydro One'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 )
	=	2352	/	( ( (34192 - 3456)	+	(35123 - 2813) )	/ 2 )
	=	2352	/	( ( 30736	+	32310 )	/ 2 )
	=	2352	/	31523
	=	7.46 %

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

Hydro One (TSX:H) 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.

Hydro One ROCE % Related Terms

Thank you for viewing the detailed overview of Hydro One's ROCE % provided by GuruFocus.com. Please click on the following links to see related term pages.

Hydro One Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Hydro One Ltd (TSX:H) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HRNNF:USA 8H1:Germany

Address

483 Bay Street, South Tower, 8th Floor, Toronto, ON, CAN, M5G 2P5

Website

https://www.hydroone.com

Hydro One operates regulated transmission and distribution assets in Ontario. The area's largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company's rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47% common equity stake.

Executives