China Shun Ke Long Holdings (HKSE:00974) ROC % : -10.09% (As of Dec. 2023)

View and export this data going back to 2015. Start your Free Trial

What is China Shun Ke Long 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 %. China Shun Ke Long Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -10.09%.

As of today (2024-05-24), China Shun Ke Long Holdings's WACC % is 5.94%. China Shun Ke Long Holdings's ROC % is -10.28% (calculated using TTM income statement data). China Shun Ke Long Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

China Shun Ke Long Holdings ROC % Historical Data

The historical data trend for China Shun Ke Long 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.

* Premium members only.

China Shun Ke Long Holdings ROC % Chart

China Shun Ke Long Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-5.55

-3.01

-10.98

-7.70

-10.28

China Shun Ke Long Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-15.03	-9.12	-7.14	-10.52	-10.09

China Shun Ke Long Holdings ROC % Calculation

China Shun Ke Long Holdings'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 )
=	-28.19 * ( 1 - 2.81% )	/	( (272.971	+	259.858)	/ 2 )
=	-27.397861	/	266.4145
=	-10.28 %

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	))
=	435.317	-	107.658	-	( 54.688	-	max(0, 193.165	-	287.256	+	54.688	))
=	272.971

	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	))
=	399.783	-	86.677	-	( 53.248	-	max(0, 186.232	-	256.419	+	53.248	))
=	259.858

China Shun Ke Long Holdings'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-28.034 * ( 1 - 5.28% )	/	( (266.306	+	259.858)	/ 2 )
=	-26.5538048	/	263.082
=	-10.09 %

where

	Invested Capital		(Q: Jun. 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	))
=	383.256	-	82.564	-	( 34.386	-	max(0, 162.011	-	237.211	+	34.386	))
=	266.306

	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	))
=	399.783	-	86.677	-	( 53.248	-	max(0, 186.232	-	256.419	+	53.248	))
=	259.858

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

China Shun Ke Long Holdings (HKSE:00974) 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 Shun Ke Long Holdings's WACC % is 5.94%. China Shun Ke Long Holdings's ROC % is -10.28% (calculated using TTM income statement data). China Shun Ke Long 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.

China Shun Ke Long Holdings ROC % Related Terms

Thank you for viewing the detailed overview of China Shun Ke Long Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

China Shun Ke Long Holdings (HKSE:00974) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » China Shun Ke Long Holdings Ltd (HKSE:00974) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 60 Hebin North Road, Huale Building, Floor 3, Lecong Town, Shunde District, Guangdong Province, Foshan, CHN, 528315

Website

http://www.skl.com.cn

China Shun Ke Long Holdings Limited is a Hong Kong-based investment holding company principally engaged in the operation of retail outlets. The Company operates through two segments. Retail Outlet Operation segment is engaged in the operation of Shun Ke Long supermarkets and hypermarkets in Guangzhou, Foshan, Zhaoqing, and Zhuhai, among others. This segment also leases out part of its retail outlets to generate rental income. It also sells consumer goods through online shops. The wholesale Distribution segment is engaged in the wholesale distribution of goods. The Company mainly operates businesses in China and Macau.

Executives

Zhong Hua Quan Guo Gong Xiao He Zuo Zong She	2201 Interest of corporation controlled by you
Bei Jing Zhong He Nong Xin Qi Ye Guan Li Zi Xun You Xian Gong Si	2201 Interest of corporation controlled by you
Zhong Xin Xin Tuo You Xian Ze Ren Gong Si	2301 Trustee
Guang Da Xing Long Xin Tuo You Xian Ze Ren Gong Si	2301 Trustee
Infini Capital Management	2101 Beneficial owner

China Shun Ke Long Holdings (HKSE:00974) Headlines

No Headlines