Hainan Meilan International Airport Co (Hainan Meilan International Airport Co) ROIC % : -1.10% (As of Dec. 2023)

View and export this data going back to 2007. Start your Free Trial

What is Hainan Meilan International Airport 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 %. Hainan Meilan International Airport Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -1.10%.

As of today (2024-05-26), Hainan Meilan International Airport Co's WACC % is 10.72%. Hainan Meilan International Airport Co's ROIC % is -0.42% (calculated using TTM income statement data). Hainan Meilan International Airport Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hainan Meilan International Airport Co ROIC % Historical Data

The historical data trend for Hainan Meilan International Airport 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.

Hainan Meilan International Airport Co ROIC % Chart

Hainan Meilan International Airport Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

Get a 7-Day Free Trial

4.82

0.80

6.24

-0.74

-0.43

Hainan Meilan International Airport Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															6.41	2.47	-1.90	0.29	-1.10

Competitive Comparison of Hainan Meilan International Airport Co's ROIC %

For the Airports & Air Services subindustry, Hainan Meilan International Airport 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.

Hainan Meilan International Airport Co's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Hainan Meilan International Airport Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Hainan Meilan International Airport Co's ROIC % falls into.

Hainan Meilan International Airport Co ROIC % Calculation

Hainan Meilan International Airport 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 )
=	-9.962 * ( 1 - 19.22% )	/	( (1767.559	+	1938.895)	/ 2 )
=	-8.0473036	/	1853.227
=	-0.43 %

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	))
=	1526.106	-	550.32	-	( 17.13	-	max(0, 860.624	-	68.851	+	17.13	))
=	1767.559

	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	))
=	1591.125	-	449.66	-	( 28.522	-	max(0, 896.148	-	98.718	+	28.522	))
=	1938.895

Hainan Meilan International Airport 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 )
=	-26.654 * ( 1 - 19.34% )	/	( (1976.398	+	1938.895)	/ 2 )
=	-21.4991164	/	1957.6465
=	-1.10 %

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	))
=	1685.336	-	502.772	-	( 44.091	-	max(0, 901.089	-	107.255	+	44.091	))
=	1976.398

	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	))
=	1591.125	-	449.66	-	( 28.522	-	max(0, 896.148	-	98.718	+	28.522	))
=	1938.895

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

Hainan Meilan International Airport Co (OTCPK:HMCTF) 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, Hainan Meilan International Airport Co's WACC % is 10.72%. Hainan Meilan International Airport Co's ROIC % is -0.42% (calculated using TTM income statement data).

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.

Hainan Meilan International Airport Co ROIC % Related Terms

Thank you for viewing the detailed overview of Hainan Meilan International Airport Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Hainan Meilan International Airport Co (Hainan Meilan International Airport Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Hainan Meilan International Airport Co Ltd (OTCPK:HMCTF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

00357:Hong Kong HAO:Germany HAO:Germany

Address

Office Building of Meilan Airport, Hainan Province, Haikou, CHN, 571126

Website

http://www.mlairport.com

Hainan Meilan International Airport Co Ltd is engaged in the operation of an airport and an ancillary hotel and the provision of related services in the PRC. The company engages and generates revenues from the operational activities at the Meilan Airport of the Hainan Province in the People's Republic of China (PRC). Under its aeronautical businesses, the firm provides terminal facilities, ground handling services, and passenger services. The non-aeronautical business includes the leasing of commercial and retail spaces at Meilan Airport, franchising of airport-related business, advertising, car parking, cargo handling, and sales of consumable goods.

Hainan Meilan International Airport Co (Hainan Meilan International Airport Co) Headlines

No Headlines