Himalaya Shipping (OSTO:HSHIPO) ROCE % : 7.33% (As of Dec. 2023)

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What is Himalaya Shipping 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. Himalaya Shipping's annualized ROCE % for the quarter that ended in Dec. 2023 was 7.33%.

Himalaya Shipping ROCE % Historical Data

The historical data trend for Himalaya Shipping'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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Himalaya Shipping ROCE % Chart

Himalaya Shipping Annual Data

Trend

Dec21

Dec22

Dec23

ROCE %

-1.64

4.22

Himalaya Shipping Quarterly Data
	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial			-1.51	-1.36	2.07	2.52	7.33

Himalaya Shipping ROCE % Calculation

Himalaya Shipping'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 )
	=	159.454	/	( ( (1756.83 - 257.386)	+	(6321.264 - 266.9) )	/ 2 )
	=	159.454	/	( (1499.444	+	6054.364)	/ 2 )
	=	159.454	/	3776.904
	=	4.22 %

Himalaya Shipping'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: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	433.452	/	( ( (6010.583 - 243.279)	+	(6321.264 - 266.9) )	/ 2 )
	=	433.452	/	( ( 5767.304	+	6054.364 )	/ 2 )
	=	433.452	/	5910.834
	=	7.33 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Himalaya Shipping (OSTO:HSHIPO) 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.

Himalaya Shipping ROCE % Related Terms

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Himalaya Shipping (OSTO:HSHIPO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Himalaya Shipping Ltd (OSTO:HSHIPO) » Definitions » ROCE %

Traded in Other Exchanges

HSHP:USA HSHP:Norway J1X:Germany

Address

19 Par-la-Ville Road, 1st Floor, Hamilton, BMU, HM 11

Website

https://www.himalaya-shipping.com

Himalaya Shipping Ltd is an independent dry bulk company that focuses on owning and operating its Newcastlemax dry bulk carriers.

Himalaya Shipping (OSTO:HSHIPO) Headlines

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