Hidili Industry International Development (HKSE:01393) ROC % : -2.60% (As of Dec. 2023)

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What is Hidili Industry International Development 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 %. Hidili Industry International Development's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -2.60%.

As of today (2024-06-05), Hidili Industry International Development's WACC % is 4.00%. Hidili Industry International Development's ROC % is -1.28% (calculated using TTM income statement data). Hidili Industry International Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hidili Industry International Development ROC % Historical Data

The historical data trend for Hidili Industry International Development'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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Hidili Industry International Development ROC % Chart

Hidili Industry International Development Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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0.94

1.89

5.28

4.87

-1.27

Hidili Industry International Development 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															5.96	6.74	3.18	0.07	-2.60

Hidili Industry International Development ROC % Calculation

Hidili Industry International Development'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 )
=	-234.867 * ( 1 - -2.49% )	/	( (20726.042	+	17181.811)	/ 2 )
=	-240.7151883	/	18953.9265
=	-1.27 %

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	))
=	14758.674	-	3601.026	-	( 93.277	-	max(0, 12757.875	-	3189.481	+	93.277	))
=	20726.042

	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	))
=	13667.008	-	2318.92	-	( 51.029	-	max(0, 8182.561	-	2348.838	+	51.029	))
=	17181.811

Hidili Industry International Development'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 )
=	-463.498 * ( 1 - 0.13% )	/	( (18421.786	+	17181.811)	/ 2 )
=	-462.8954526	/	17801.7985
=	-2.60 %

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	))
=	14577.452	-	819.701	-	( 47.782	-	max(0, 7268.008	-	2603.973	+	47.782	))
=	18421.786

	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	))
=	13667.008	-	2318.92	-	( 51.029	-	max(0, 8182.561	-	2348.838	+	51.029	))
=	17181.811

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

Hidili Industry International Development (HKSE:01393) 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, Hidili Industry International Development's WACC % is 4.00%. Hidili Industry International Development's ROC % is -1.28% (calculated using TTM income statement data). Hidili Industry International Development 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.

Hidili Industry International Development ROC % Related Terms

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Hidili Industry International Development (HKSE:01393) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Hidili Industry International Development Ltd (HKSE:01393) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

No. 185 Renmin Road, 16th Floor, Dingli Mansion, Sichuan Province, Panzhihua, CHN, 617000

Website

http://www.hidili.com.cn

Hidili Industry International Development Ltd is an investment holding company engaged in the coal mining, manufacture, and sale of raw coal and clean coal. It derives revenue from the production and sales of Clean coal and its by-products such as Raw coal, High-ash thermal coal, and others. All of the group's turnover is derived from the operation in the PRC.

Executives

Qiao Qian	2202 Interest of your spouse
Sanlian Investment Holding Limited	2101 Beneficial owner
Xian Yang	2101 Beneficial owner
Trident Trust Company (singapore) Pte. Limited	2301 Trustee
Xian Yang No. 1 Ltd	2201 Interest of corporation controlled by you
Xian Yang No. 1a Ltd	2201 Interest of corporation controlled by you
Sanlian No. 1 Ltd	2201 Interest of corporation controlled by you
Ma Wei	2101 Beneficial owner
Fosun Holdings Limited	2201 Interest of corporation controlled by you
Fosun International Holdings Ltd.	2201 Interest of corporation controlled by you
Fosun International Limited	2201 Interest of corporation controlled by you
Guo Guangchang	2201 Interest of corporation controlled by you
Fosun Financial Holdings Limited	2201 Interest of corporation controlled by you
Peak Reinsurance Company Limited	2101 Beneficial owner
Spinel Investment Limited	2201 Interest of corporation controlled by you

Hidili Industry International Development (HKSE:01393) Headlines

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