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Beijing Capital Jiaye Property Services Co (HKSE:02210) ROIC % : 9.38% (As of Dec. 2023)


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What is Beijing Capital Jiaye Property Services Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Beijing Capital Jiaye Property Services Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 9.38%.

As of today (2024-06-05), Beijing Capital Jiaye Property Services Co's WACC % is 10.15%. Beijing Capital Jiaye Property Services Co's ROIC % is 11.78% (calculated using TTM income statement data). Beijing Capital Jiaye Property Services Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Beijing Capital Jiaye Property Services Co ROIC % Historical Data

The historical data trend for Beijing Capital Jiaye Property Services Co's ROIC % 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.

Beijing Capital Jiaye Property Services Co ROIC % Chart

Beijing Capital Jiaye Property Services Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial 4.54 8.18 11.68 13.35 11.11

Beijing Capital Jiaye Property Services Co Semi-Annual Data
Dec18 Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only 9.49 12.42 15.69 15.36 9.38

Competitive Comparison of Beijing Capital Jiaye Property Services Co's ROIC %

For the Real Estate Services subindustry, Beijing Capital Jiaye Property Services Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Beijing Capital Jiaye Property Services Co's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Beijing Capital Jiaye Property Services Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Beijing Capital Jiaye Property Services Co's ROIC % falls into.



Beijing Capital Jiaye Property Services Co ROIC % Calculation

Beijing Capital Jiaye Property Services Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=131.672 * ( 1 - 23.92% )/( (780.131 + 1023.534)/ 2 )
=100.1760576/901.8325
=11.11 %

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))
=2433.831 - 997.31 - ( 1273.873 - max(0, 1443.478 - 2099.868+1273.873))
=780.131

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))
=2589.439 - 994.669 - ( 1208.883 - max(0, 1519.91 - 2091.146+1208.883))
=1023.534

Beijing Capital Jiaye Property Services Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=108.696 * ( 1 - 23.64% )/( (747.066 + 1023.534)/ 2 )
=83.0002656/885.3
=9.38 %

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))
=2385.145 - 989.42 - ( 1137.028 - max(0, 1392.116 - 2040.775+1137.028))
=747.066

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))
=2589.439 - 994.669 - ( 1208.883 - max(0, 1519.91 - 2091.146+1208.883))
=1023.534

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


Beijing Capital Jiaye Property Services Co  (HKSE:02210) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Beijing Capital Jiaye Property Services Co's WACC % is 10.15%. Beijing Capital Jiaye Property Services Co's ROIC % is 11.78% (calculated using TTM income statement data). Beijing Capital Jiaye Property Services Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Beijing Capital Jiaye Property Services 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 %, ROIC % 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.


Beijing Capital Jiaye Property Services Co ROIC % Related Terms

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Beijing Capital Jiaye Property Services Co (HKSE:02210) Business Description

Traded in Other Exchanges
N/A
Address
18 North Taipingzhuang Road, 8th Floor, Building A, Chengjian Plaza, Haidian District, Beijing, CHN, 100088
Beijing Capital Jiaye Property Services Co Ltd is a China-based company principally engaged in providing integrated property management services. The company's services mainly include security services, cleaning services, greening and gardening services, repair and maintenance services, and customer services. In addition, the company also provides community value-added services such as heating services, catering services, real estate brokerage services, and parking space operation services, and non-owner value-added services such as case and model room management, pre-delivery support services, tenant solicitation, and management services.
Executives
Hwabao Trust Co., Ltd 2301 Trustee
Hu Junsheng 2201 Interest of corporation controlled by you
China International Capital Corporation (hong Kong) Limited 2201 Interest of corporation controlled by you
China International Capital Corporation Hong Kong Securities Limited 2105 Underwriter
Cai Tong Ji Jin Guan Li You Xian Gong Si 2501 Other
Cai Tong Zheng Quan Gu Fen You Xian Gong Si 2201 Interest of corporation controlled by you
Lu Shang Xiang Gang You Xian Gong Si 2101 Beneficial owner
Bei Jing Cheng Jian Liu Jian She Ji Tuan You Xian Gong Si 2501 Other
Bei Jing Cheng Jian Chang Cheng Jian She Ji Tuan You Xian Gong Si 2501 Other
Hua An Ji Jin Jin Xi Dan Yi Zi Chan Guan Li Ji Hua 2501 Other
Hua An Ji Jin Jin Ying Dan Yi Zi Chan Guan Li Ji Hua 2501 Other
Bei Jing Cheng Jian Bei Fang Ji Tuan You Xian Gong Si 2501 Other
Bei Shi Tou Zi Ji Tuan You Xian Ze Ren Gong Si 2201 Interest of corporation controlled by you
Bei Jing Cheng Jian Yuan Dong Jian She Tou Zi Ji Tuan You Xian Gong Si 2101 Beneficial owner
Cai Tong Ji Jin Cai Tong Hai Wai Hao Dan Yi Zi Chan Guan Li Ji Hua 2501 Other

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