Name: Return on Capital Employed (ROCE)

Definition: ROCE looks at how effectively the company uses all long-term capital — both debt and equity — to generate profits. It’s a good way to compare companies with different financing structures. Higher ROCE means the company makes good returns on every dollar invested in its business operations.

Interpretation:
• In '2021', H's return on capital employed was 2.0%, indicating returns achieved on invested capital. Industry average for Hotels/Resorts in '2021' stood at 15.9%.
• In '2022', H's return on capital employed was 5.7%, indicating returns achieved on invested capital. The increase since '2021' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2022' stood at 6.2%. Industry average declined by 9.7% from previous year.
• In '2023', H's return on capital employed was 4.9%, indicating returns achieved on invested capital. The decline from '2022' may indicate some operational or financial challenges. Industry average for Hotels/Resorts in '2023' stood at 9.0%. Industry average increased by 2.8% compared to previous year.
• In '2024', H's return on capital employed was 17.3%, indicating returns achieved on invested capital. The increase since '2023' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2024' stood at 9.0%. Industry average declined by 0.0% from previous year.
Overall, H's return on capital employed has been volatile but showed an upward trend over the past 4 years.

Formula: ROCE = EBIT / (Total Assets - Current Liabilities)

Good Range: Often 8%-20%.