eCargo Holdings (ASX:ECG) ROC % : -0.26% (As of Dec. 2023)

View and export this data going back to 2014. Start your Free Trial

What is eCargo Holdings 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 %. eCargo Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -0.26%.

As of today (2024-05-01), eCargo Holdings's WACC % is 4.81%. eCargo Holdings's ROC % is -2.64% (calculated using TTM income statement data). eCargo Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

eCargo Holdings ROC % Historical Data

The historical data trend for eCargo Holdings'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.

* Premium members only.

eCargo Holdings ROC % Chart

eCargo Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-22.97

-6.52

-4.40

-7.99

-2.42

eCargo Holdings Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial													7.24	-9.47	-3.87	-6.69	-0.26

eCargo Holdings ROC % Calculation

eCargo Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.336 * ( 1 - -17.18% )	/	( (10.347	+	22.218)	/ 2 )
=	-0.3937248	/	16.2825
=	-2.42 %

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	))
=	15.894	-	2.933	-	( 5.154	-	max(0, 10.156	-	12.77	+	5.154	))
=	10.347

	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	))
=	30.585	-	5.343	-	( 4.53	-	max(0, 24.587	-	27.611	+	4.53	))
=	22.218

eCargo Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.038 * ( 1 - -16.06% )	/	( (12.058	+	22.218)	/ 2 )
=	-0.0441028	/	17.138
=	-0.26 %

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	))
=	18.244	-	2.976	-	( 3.21	-	max(0, 10.583	-	15.319	+	3.21	))
=	12.058

	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	))
=	30.585	-	5.343	-	( 4.53	-	max(0, 24.587	-	27.611	+	4.53	))
=	22.218

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

eCargo Holdings (ASX:ECG) 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, eCargo Holdings's WACC % is 4.81%. eCargo Holdings's ROC % is -2.64% (calculated using TTM income statement data). eCargo Holdings 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.

eCargo Holdings ROC % Related Terms

Thank you for viewing the detailed overview of eCargo Holdings's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

eCargo Holdings (ASX:ECG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » eCargo Holdings Ltd (ASX:ECG) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

13103N, ATL Logistics Centre B, 3 Kwai Chung Container Terminals, New Territories, Hong Kong, HKG

Website

https://www.eCargo.com

eCargo Holdings Ltd is an eCommerce business solution provider engaged in the development and provision of eCommerce technologies, integrated offline and online supply chain operations, provision of digital commerce solutions and services and brand distribution.. The company provides integrated online and offline supply chain solutions and operations for designer brands, retailers, and branded manufacturers. Its segments are Digital Commerce Service and Brand Distributions in Greater China. The majority of revenue is generated from the Greater China segment.

eCargo Holdings (ASX:ECG) Headlines

No Headlines