AMTD (AMTD IDEA Group) ROC % : 1.59% (As of Dec. 2024)

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What is AMTD IDEA Group 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 %. AMTD IDEA Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 1.59%.

As of today (2025-07-05), AMTD IDEA Group's WACC % is 1.69%. AMTD IDEA Group's ROC % is 1.62% (calculated using TTM income statement data). AMTD IDEA Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AMTD IDEA Group ROC % Historical Data

The historical data trend for AMTD IDEA Group'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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AMTD IDEA Group ROC % Chart

AMTD IDEA Group Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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8.27

15.20

8.36

6.88

1.59

AMTD IDEA Group Semi-Annual Data
	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial											-5.19	14.34	-1.68	1.73	1.59

AMTD IDEA Group ROC % Calculation

AMTD IDEA Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	26.043 * ( 1 - 2.97% )	/	( (1280.799	+	1903.651)	/ 2 )
=	25.2695229	/	1592.225
=	1.59 %

where

	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	))
=	1486.59	-	85.557	-	( 120.234	-	max(0, 157.06	-	1202.684	+	120.234	))
=	1280.799

	Invested Capital		(A: Dec. 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	))
=	2069.918	-	78.408	-	( 87.859	-	max(0, 143.133	-	1519.455	+	87.859	))
=	1903.651

AMTD IDEA Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	26.714 * ( 1 - -2.02% )	/	( (1520.338	+	1903.651)	/ 2 )
=	27.2536228	/	1711.9945
=	1.59 %

where

	Invested Capital		(Q: Jun. 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	))
=	1703.21	-	104.298	-	( 78.574	-	max(0, 134.457	-	1219.412	+	78.574	))
=	1520.338

	Invested Capital		(Q: Dec. 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	))
=	2069.918	-	78.408	-	( 87.859	-	max(0, 143.133	-	1519.455	+	87.859	))
=	1903.651

Note: The Operating Income data used here is two times the semi-annual (Dec. 2024) data.

AMTD IDEA Group (NYSE:AMTD) 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, AMTD IDEA Group's WACC % is 1.69%. AMTD IDEA Group's ROC % is 1.62% (calculated using TTM income statement data). AMTD IDEA Group 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.

AMTD IDEA Group ROC % Related Terms

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AMTD IDEA Group Business Description

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9AM0:Germany

Address

66 rue Jean-Jacques, Rousseau, Paris, FRA, 75001

Website

https://www.amtdinc.com

AMTD IDEA Group is a financial institution operating in five business segments: The capital market solutions segment assists customers in raising funds through equity and debt financing, private placements, and debt issuances. The digital solutions and other services segment provides institutional and corporate clients with paid access to enhance investor communication and relations, corporate communication also provides digital financial solution services. The Media and entertainment segment offers print and digital advertising campaigns, licensing, and marketing services including branded content, video production. The hotel operations, hospitality, and VIP services segment engages in hotel investments, hotel operations, hospitality, and VIP services; and Strategic investment segment.