GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Deluxe Family Co Ltd (SHSE:600503) » Definitions » ROC %

Deluxe Family Co (SHSE:600503) ROC % : 1.71% (As of Mar. 2024)


View and export this data going back to 2002. Start your Free Trial

What is Deluxe Family Co 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 %. Deluxe Family Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 1.71%.

As of today (2024-05-26), Deluxe Family Co's WACC % is 11.13%. Deluxe Family Co's ROC % is 3.62% (calculated using TTM income statement data). Deluxe Family Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Deluxe Family Co ROC % Historical Data

The historical data trend for Deluxe Family Co'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.

Deluxe Family Co ROC % Chart

Deluxe Family Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.34 2.62 -0.08 -1.01 2.43

Deluxe Family Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.63 -2.02 4.60 9.43 1.71

Deluxe Family Co ROC % Calculation

Deluxe Family Co'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 )
=115.215 * ( 1 - 42.01% )/( (2626.582 + 2863.407)/ 2 )
=66.8131785/2744.9945
=2.43 %

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))
=4877.199 - 849.202 - ( 1401.415 - max(0, 1171.746 - 3579.534+1401.415))
=2626.582

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))
=4223.037 - 486.474 - ( 873.156 - max(0, 573.833 - 3169.887+873.156))
=2863.407

Deluxe Family Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=73.56 * ( 1 - 29.29% )/( (2863.407 + 3202.824)/ 2 )
=52.014276/3033.1155
=1.71 %

where

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))
=4223.037 - 486.474 - ( 873.156 - max(0, 573.833 - 3169.887+873.156))
=2863.407

Invested Capital(Q: Mar. 2024 )
=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))
=4069.249 - 298.692 - ( 567.733 - max(0, 344.984 - 3033.143+567.733))
=3202.824

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

* 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.


Deluxe Family Co  (SHSE:600503) 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, Deluxe Family Co's WACC % is 11.13%. Deluxe Family Co's ROC % is 3.62% (calculated using TTM income statement data). Deluxe Family Co 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.


Deluxe Family Co ROC % Related Terms

Thank you for viewing the detailed overview of Deluxe Family Co's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Deluxe Family Co (SHSE:600503) Business Description

Traded in Other Exchanges
N/A
Address
Room 202, No. 1, Lane 968, Quxi Road, Huangpu District, Shanghai, CHN, 200336
Deluxe Family Co Ltd is engaged in real estate development. It is also involved in the architectural decoration, environmental protection and other related industries, and is expanding its commercial real estate and tourism business.
Executives
Wang Jian Zhong Director
Xing Hai Xia Director
Wang Li Xun Director
Lin Quan Supervisors
Ceng Zhi Feng Director
Di Zi Zhong Director
Chen Zhi Jian Director
Jin Xin senior management

Deluxe Family Co (SHSE:600503) Headlines

No Headlines