Whitbread Group PLC: Market Value, Change in Revenues and Profits, and Ability to Create and Capture Value

Whitbread’s Group PLC Market Value, Change in Revenues and Profits, and its Ability to Create and Capture Value

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Whitbread’s Group PLC Market Value, Change in Revenues and Profits, and its Ability to Create and Capture Value

How Whitbread Group PLC’s Revenues and Profits have Changed through the Years

Return on Equity (ROE)

The company’s ROE in 2013 was 23.996%, which decreased to 20.224% in 2014. In 2015, the ROE increased to 22.362%, then reduced to 18.641% and 17.939% in 2016 and 2017, respectively. In 2018, the ROE increased to 20.262% and drastically reduced to 4.268% and 8.275% in 2019 and 2020, respectively, further reducing to -40.193% in 2021 before returning to a positive figure of 0.646% in 2022. The firm performed poorly starting in 2019 because of the Covid-19 epidemic as revenues decreased due to reduced customers’ movements to organizations to stop the illness from spreading (study material Q1). Therefore, Whitbread Group PLC could easily change its equity funding into profits in the earlier years when its ROE was higher than in the later years when its ROE was low. 

Return on Capital Employed (ROCE)

Whitbread Group PLC’s ROCE