Banyan Tree Holdings (Banyan Tree Holdings) ROC % : 0.99% (As of Dec. 2023)

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What is Banyan Tree 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 %. Banyan Tree Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.99%.

As of today (2024-05-02), Banyan Tree Holdings's WACC % is 6.78%. Banyan Tree Holdings's ROC % is 0.95% (calculated using TTM income statement data). Banyan Tree Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Banyan Tree Holdings ROC % Historical Data

The historical data trend for Banyan Tree 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.

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Banyan Tree Holdings ROC % Chart

Banyan Tree Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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0.36

-4.22

-1.99

-0.07

0.91

Banyan Tree Holdings Semi-Annual Data
	Jun14	Dec14	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															1.03	-0.01	0.14	30.91	0.99

Banyan Tree Holdings ROC % Calculation

Banyan Tree 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 )
=	12.413 * ( 1 - 22.85% )	/	( (909.448	+	1200.842)	/ 2 )
=	9.5766295	/	1055.145
=	0.91 %

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	))
=	1004.08	-	44.478	-	( 122.018	-	max(0, 293.235	-	343.389	+	122.018	))
=	909.448

	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	))
=	1300.007	-	49.995	-	( 98.118	-	max(0, 281.87	-	331.04	+	98.118	))
=	1200.842

Banyan Tree 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 )
=	13.996 * ( 1 - 25.95% )	/	( (884.531	+	1200.842)	/ 2 )
=	10.364038	/	1042.6865
=	0.99 %

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	))
=	1025.614	-	130.484	-	( 105.052	-	max(0, 315.101	-	325.7	+	105.052	))
=	884.531

	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	))
=	1300.007	-	49.995	-	( 98.118	-	max(0, 281.87	-	331.04	+	98.118	))
=	1200.842

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

Banyan Tree Holdings (OTCPK:BYNEF) 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, Banyan Tree Holdings's WACC % is 6.78%. Banyan Tree Holdings's ROC % is 0.95% (calculated using TTM income statement data). Banyan Tree 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.

Banyan Tree Holdings ROC % Related Terms

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Banyan Tree Holdings (Banyan Tree Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Banyan Tree Holdings Ltd (OTCPK:BYNEF) » Definitions » ROC %

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B58:Singapore

Address

211 Upper Bukit Timah Road, Singapore, SGP, 588182

Website

https://www.banyantree.com

Banyan Tree Holdings Ltd is a multi-branded hospitality group with a portfolio of hotels, resorts, spas, galleries, golf, and residences centered on five brands (Banyan Tree, Angsana, Cassia, Dhawa, and Laguna). The company operates in two segments: The Property sales segment comprises hotel residences, Laguna property sales, and development project/site sales; and the Fee-based segment comprises the management of hotels & resorts, management of the club, spas, private equity funds, sales of merchandise, the provision of architectural & design services, and Other services. Its geographical segments are Singapore, South East Asia, Indian Oceania, the Middle East, North-East Asia, and the Rest of the world.