Daisho Microline Holdings (HKSE:00567) ROC % : -22.81% (As of Sep. 2023)

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What is Daisho Microline Holdings ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Daisho Microline Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -22.81%.

As of today (2024-05-31), Daisho Microline Holdings's WACC % is 8.32%. Daisho Microline Holdings's ROC % is -25.29% (calculated using TTM income statement data). Daisho Microline Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Daisho Microline Holdings ROC % Historical Data

The historical data trend for Daisho Microline Holdings's ROC % 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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Daisho Microline Holdings ROC % Chart

Daisho Microline Holdings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROC %

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-19.29

-22.87

-14.92

-19.80

-19.90

Daisho Microline Holdings Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROC %	Get a 7-Day Free Trial															-22.50	-17.20	-14.39	-28.52	-22.81

Daisho Microline Holdings ROC % Calculation

Daisho Microline Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-14.586 * ( 1 - -0.58% )	/	( (90.053	+	57.369)	/ 2 )
=	-14.6705988	/	73.711
=	-19.90 %

where

	Invested Capital		(A: Mar. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	175.608	-	30.543	-	( 55.012	-	max(0, 42.801	-	125.065	+	55.012	))
=	90.053

	Invested Capital		(A: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	144.603	-	37.628	-	( 49.606	-	max(0, 38.376	-	94.673	+	49.606	))
=	57.369

Daisho Microline Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-13.296 * ( 1 - 0.6% )	/	( (57.369	+	58.518)	/ 2 )
=	-13.216224	/	57.9435
=	-22.81 %

where

	Invested Capital		(Q: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	144.603	-	37.628	-	( 49.606	-	max(0, 38.376	-	94.673	+	49.606	))
=	57.369

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	128.928	-	27.593	-	( 42.817	-	max(0, 28.209	-	78.703	+	42.817	))
=	58.518

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

Daisho Microline Holdings (HKSE:00567) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Daisho Microline Holdings's WACC % is 8.32%. Daisho Microline Holdings's ROC % is -25.29% (calculated using TTM income statement data). Daisho Microline Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Daisho Microline Holdings ROC % Related Terms

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Daisho Microline Holdings (HKSE:00567) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Daisho Microline Holdings Ltd (HKSE:00567) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

33 Lee Chung Street, Unit A, 10th Floor, Fook Hing Industrial Building, Chai Wan, Hong Kong, HKG

Website

http://www.daisho-microline.com

Daisho Microline Holdings Ltd is an investment holding company. The company's segment includes the Manufacturing and trading of printed circuit boards; and the Manufacturing and trading of printing and packaging products. The company generates maximum revenue from the Manufacturing and trading of printing and packaging products segment.

Executives

Ng Man Chan	2101 Beneficial owner
Li Mi Lai	2202 Interest of your spouse
Ng Man Chan	2103 Interests held jointly with another person
Chu Yuet Wah	2201 Interest of corporation controlled by you
Spring Global Enterprises Limited	2101 Beneficial owner
Cheung Ling Mun	2101 Beneficial owner
Ample Cheer Limited	2201 Interest of corporation controlled by you
Kingston Finance Limited	2106 Person having a security interest in shares
Apact Consultancy (hong Kong) Company Limited	2102 Investment manager
Cheung Lai Ming	2101 Beneficial owner
Cheung Lai Na	2301 Trustee

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