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Kwung's Aroma Holdings (HKSE:01925) ROC (Joel Greenblatt) % : 42.88% (As of Jun. 2024)


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What is Kwung's Aroma Holdings ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Kwung's Aroma Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 42.88%.

The historical rank and industry rank for Kwung's Aroma Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:

HKSE:01925' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 28.72   Med: 40.97   Max: 147
Current: 36.33

During the past 8 years, Kwung's Aroma Holdings's highest ROC (Joel Greenblatt) % was 147.00%. The lowest was 28.72%. And the median was 40.97%.

HKSE:01925's ROC (Joel Greenblatt) % is ranked better than
83.9% of 1907 companies
in the Consumer Packaged Goods industry
Industry Median: 11.91 vs HKSE:01925: 36.33

Kwung's Aroma Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -19.50% per year.


Kwung's Aroma Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Kwung's Aroma Holdings's ROC (Joel Greenblatt) % 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.

Kwung's Aroma Holdings ROC (Joel Greenblatt) % Chart

Kwung's Aroma Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 40.77 37.25 30.77 28.72 41.17

Kwung's Aroma Holdings Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC (Joel Greenblatt) % 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 21.34 31.14 35.12 32.74 42.88

Competitive Comparison of Kwung's Aroma Holdings's ROC (Joel Greenblatt) %

For the Household & Personal Products subindustry, Kwung's Aroma Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.


Kwung's Aroma Holdings's ROC (Joel Greenblatt) % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kwung's Aroma Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Kwung's Aroma Holdings's ROC (Joel Greenblatt) % falls into.



Kwung's Aroma Holdings ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(165.371 + 75.091 + 35.14) - (193.118 + 0 + 16.391)
=66.093

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(178.797 + 168.234 + 71.646) - (307.984 + 0 + 26.332)
=84.361

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Kwung's Aroma Holdings for the quarter that ended in Jun. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=127.304/( ( (183.112 + max(66.093, 0)) + (260.167 + max(84.361, 0)) )/ 2 )
=127.304/( ( 249.205 + 344.528 )/ 2 )
=127.304/296.8665
=42.88 %

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT 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.


Kwung's Aroma Holdings  (HKSE:01925) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Kwung's Aroma Holdings ROC (Joel Greenblatt) % Related Terms

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Kwung's Aroma Holdings Business Description

Traded in Other Exchanges
N/A
Address
827 Qixiang Road, Zhejiang Province, Haishu District, Ningbo, CHN
Kwung's Aroma Holdings Ltd is engaged in design and manufacture of home decoration products and home fragrance products, comprising core products such as home fragrance candles and home fragrance diffusers, which are considered to be widely used in people's daily life.
Executives
Dma Limited 2101 Beneficial owner
Ru Liming 2201 Interest of corporation controlled by you
Jin Jianxin 2307 Founder of a discretionary trust who can infl
Golden Element Investment Limited 2101 Beneficial owner
Equiom Fiduciary Services (hong Kong) Limited 2301 Trustee
Golden Existence Investment Limited 2201 Interest of corporation controlled by you
Chen Jiangyan 2202 Interest of your spouse
Jin Jianxin 2307 Founder of a discretionary trust who can infl
King Harmony Limited 2201 Interest of corporation controlled by you
Industrial Securities (hong Kong) Financial Holdings Limited 2201 Interest of corporation controlled by you

Kwung's Aroma Holdings Headlines

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