ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Asian Capital Resources holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2022 was 28.00%.
As of today (2024-04-25), Asian Capital Resources holdings's WACC % is 0.00%. Asian Capital Resources holdings's ROIC % is 0.00% (calculated using TTM income statement data).
Asian Capital Resources holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Asian Capital Resources holdings ROIC % Historical Data
The historical data trend for Asian Capital Resources holdings'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.
Competitive Comparison of Asian Capital Resources holdings's ROIC %
For the Asset Management subindustry, Asian Capital Resources holdings'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.
Asian Capital Resources holdings's ROIC % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Asian Capital Resources holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Asian Capital Resources holdings's ROIC % falls into.
Asian Capital Resources holdings ROIC % Calculation
Asian Capital Resources holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Sep. 2022) 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.
Asian Capital Resources holdings (HKSE:08025) 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, Asian Capital Resources holdings's WACC % is 0.00%. Asian Capital Resources holdings's ROIC % is 0.00% (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.
Asian Capital Resources holdings ROIC % Related Terms
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Asian Capital Resources holdings (HKSE:08025) Business Description
Asian Capital Resources holdings, along with its subsidiaries, operates in two segments: Consultancy Services and Media Services which involves internet and software development and maintenance services, traditional media and internet media content production services and media content design services and provide marketing services to promote products on internet platforms for customers. The vast majority of its revenue comes from the Consultancy Services segment, which provides private investment fund management and consultancy services, internet & software development, and maintenance services. The company's geographical segments are China and Hong Kong, of which all of its revenue comes from China.
Asian Capital Resources holdings (HKSE:08025) Headlines
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