China Tower (HKSE:00788) ROC % : 0.00% (As of Dec. 2023)

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What is China Tower 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 %. China Tower's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-05-28), China Tower's WACC % is 5.30%. China Tower's ROC % is 0.00% (calculated using TTM income statement data). China Tower earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Tower ROC % Historical Data

The historical data trend for China Tower'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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China Tower ROC % Chart

China Tower Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.46

2.78

3.16

3.80

4.23

China Tower Quarterly Data
	Dec16	Mar17	Jun17	Dec17	Mar18	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

China Tower ROC % Calculation

China Tower's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	17932.505 * ( 1 - 24.02% )	/	( (325650.762	+	319069.52)	/ 2 )
=	13625.117299	/	322360.141
=	4.23 %

where

	Invested Capital		(A: Dec. 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	))
=	341223.349	-	32828.063	-	( 5714.229	-	max(0, 72762.898	-	55507.422	+	5714.229	))
=	325650.762

	Invested Capital		(A: Dec. 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	))
=	356579.573	-	33184.158	-	( 4325.895	-	max(0, 69929.659	-	85405.537	+	4325.895	))
=	319069.52

China Tower's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (348095.193	+	319069.52)	/ 2 )
=	0	/	333582.3565
=	0.00 %

where

	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	))
=	348095.193	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	348095.193

	Invested Capital		(Q: Dec. 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	))
=	356579.573	-	33184.158	-	( 4325.895	-	max(0, 69929.659	-	85405.537	+	4325.895	))
=	319069.52

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

China Tower (HKSE:00788) 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, China Tower's WACC % is 5.30%. China Tower's ROC % is 0.00% (calculated using TTM income statement data). China Tower 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.

China Tower ROC % Related Terms

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China Tower (HKSE:00788) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » China Tower Corp Ltd (HKSE:00788) » Definitions » ROC %

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Address

Yard No. 9, Dongran North Street, China Tower Industrial Park, Haidian District, Room 101, LG1 to 3rd Floor, Building 14, North District, Beijing, CHN

Website

https://www.china-tower.com

China Tower Corp Ltd is a telecommunications tower infrastructure service provider. The business of the company includes tower business; DAS business; Smart Tower business and Energy business. It generates maximum revenue from the tower business. The Tower business includes macro cell and small cell business. Its DAS business provides a DAS system to the Three TSPs for connecting their telecommunication equipment, helping them receive and send indoor mobile telecommunication network signals to enable mobile telecommunication network signals covering buildings, large venues and tunnels.

Executives

Blackrock, Inc.	2201 Interest of corporation controlled by you
Citigroup Inc.	2502 Approved lending agent
Gic Private Limited	2102 Investment manager

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